President Ferdinand Marcos Jr. has agreed to prioritize proposed changes to the Rice Tariffication Law (RTL) in order to allow the National Food Authority to sell inexpensive rice in markets once again. This decision follows House Speaker Martin Romualdez’s statement that amending the RTL to restore the NFA’s original role would help stabilize the rising prices of rice.
During an interview with reporters on Monday, Marcos highlighted the continuous increase in rice prices due to the pricing set by private traders beyond the government’s control. The urgency of certifying the proposed changes was justified by Marcos in light of this situation.
Recent data from the Philippine Statistics Authority revealed a significant spike in rice inflation in March, reaching a 15-year high of 24.4%. This marks the country’s highest rice inflation rate since February 2009.
Romualdez had previously mentioned the House of Representatives’ goal to lower rice prices from the current range of P40 to P45 / P50 to P30 per kilo by June through revisions to the RTL. The proposed amendments focus on tariff rates, taxes, and expanding the NFA’s authority to procure palay directly from farmers.
The RTL, enacted in 2019, aimed to liberalize the importation, exportation, and trading of rice by implementing tariffs instead of non-tariff import restrictions. While the law was seen as an effective mechanism to lower prices by the Duterte administration, it faced opposition from farmer groups concerned about the impact of cheap, lower-quality imported rice on domestic farmers’ income.
Critics, including the IBON Foundation, have pointed out that the RTL failed to bring down rice prices effectively. Data shows that rice inflation escalated from 4.%% in February 2019 to 23.7% in February 2024. The liberalization of rice also negatively impacted farmers’ income, with a significant decrease in net income per hectare reported in 2019 compared to previous years.
Efforts to amend the RTL and reinstate the NFA’s regulatory powers aim to address these challenges and mitigate the effects of rice inflation on Filipino consumers and farmers.
