At the third meeting of the ‘Murang Pagkain’ Super Committee, the Department of Agriculture (DA) proposed the restoration of the National Food Authority’s (NFA) power to buy and sell rice at lower prices.
DA Secretary Francisco Tiu Laurel Jr. emphasized the need for restoring the NFA’s power to directly intervene in the rice market by selling rice at lower prices, and not just being a mere buffer stock under the 2019 Rice Tariffication Law (RTL).
“I think that is the most important and that will solve, assuming meron tayong final formula at meron kayong bagong batas na ilalabas tungkol diyan, that will solve the problems moving forward for many years,” Tiu Laurel stated.
The agriculture chief also highlighted the constraints imposed by the RTL which stripped the NFA of its market intervention capabilities. This removal has hindered the DA’s ability to control rice prices effectively.
The ongoing investigation is pursuant to House Resolution 254 authored by House Speaker Ferdinand Martin Romualdez, which seeks to address smuggling, hoarding and price manipulation of agricultural and other basic commodities.
“Sa ngayon ang nangyayari sa amin, para kaming lumalaban na ang kamay namin nakatali sa likod,” the agriculture head lamented.
He also called on Congress to grant more powers to the DA to address food price issues comprehensively.
“Kung pwede alisin ang mga limitasyon na pumipigil sa amin para magawa namin ang aming trabaho ng buo at walang balakid,” Tiu Laurel said.
Sultan Kudarat Representative Horacio Suansing questioned Tiu Laurel regarding the profit margins of rice retailers, as well as who should oversee the overpricing of rice.
He responded that the DA does not have the enforcement authority to apprehend anyone in the market for overpricing.
“Unfortunately, wala kaming powers to catch anybody sa merkado dahil wala kaming enforcement for that,” Tiu Laurel said.
Department of Trade and Industry (DTI) Director Cherryl Carbonell also clarified that the DTI only has enforcement power over manufactured basic necessities and prime commodities (BNPCs).
Batangas Representative Gerville Luistro wondered at the limited involvement of the Philippine Competition Commission (PCC) in controlling the prices of basic goods, urging the commission to take more proactive measures.
PCC Enforcement Office Director Christian Loren De Los Santos explained that the commission is tasked with investigating anti-competitive agreements, abuse of dominance and anti-competitive mergers but clarified that their mandate does not extend to price regulation or licensing.
“But of course you will agree with me that the pricing, licensing, has something to do as well with the prevalence of rice cartel in the Philippines?” Luistro asked.
De Los Santos acknowledged that the lack of licensing power is a contributing factor, but clarified that the PCC’s role is limited to investigating and prosecuting anti-competitive practices.
The lady legislator pointed out that the DA is challenged by the absence of quasi-judicial authority, only to find out that it is vested in the PCC.
“With all due respect to PCC but I find this so frustrating. And if I may add, the PCC should be proactive. You should be reaching out to the Department of Agriculture because you know for a fact that you have the mandate to address the uncontrollable prices of basic commodities,” the lawmaker said.
The ongoing investigation is pursuant to House Resolution 254 authored by House Speaker Ferdinand Martin Romualdez, which seeks to address smuggling, hoarding and price manipulation of agricultural and other basic commodities.
