Key takeaways:
- Philippine government to designate an agency for targeted rice imports to control price surges
- This plan could modify the import liberalization measures introduced by the Rice Tariffication Law (RTL) in 2019
- President Marcos supports amending the RTL but acknowledges ongoing discussions in Congress may provide alternative solutions
- House Bill 10381 proposes to empower the National Food Authority (NFA) to manage rice imports under specific circumstances
- House of Representatives aims to pass amendments to the RTL before the congressional break on May 25th
The Philippine government has unveiled a much-needed solution to address the rising cost of rice, a staple food in the country. President Ferdinand Marcos Jr. announced the governments plan to designate a specific agency to manage rice imports during periods of price surges.
This approach marks a potential shift from the current system established by the Rice Tariffication Law (RTL) of 2019, which liberalized rice imports by private traders.
“I don’t want to preempt the Bicameral Committee, but I think we have found the solution already,” President Marcos said in a media interview. The plan involves designating a specific government agency to import rice whenever prices surge. This agency would then release the imported rice into the market at a lower price, effectively driving down overall market prices and making rice more affordable for Filipinos.
The President emphasized that the specific agency tasked with managing rice imports would be determined by Congress.
Amending the law
President Marcos also reiterated his support for amending the RTL, although he acknowledged ongoing discussions in Congress may have identified alternative solutions.
“Actually, it would still be certified [as urgent] but there seems to be some positive discussion between the House and Senate,” he said. “We have found a solution and we see that immediately, we will be immediately able to bring down the price of rice.”
The House of Representatives recently approved House Bill (HB) 10381, which proposes amendments to the RTL. This bill would empower the National Food Authority (NFA) to manage rice imports under certain conditions, such as food security emergencies caused by supply shortages or price spikes.
The proposed amendments also aim to strengthen the NFA’s role in rice market stabilization by allowing it to utilize existing buffer stocks and purchase rice domestically before resorting to direct imports.
Next steps
Speaker Martin Romualdez has indicated that the House of Representatives intends to expedite the passage of the RTL amendments before the congressional recess on May 25th.Ⓒ
Business Bayani PH 
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