Rice farmers have pleaded to President Ferdinand "Bongbong" Marcos Jr. to restore National Food Authority's (NFA) regulatory powers to assure farmers of a sure market that pays higher while also assuring lower prices for consumers
The Mabandi Multi Purpose Cooperative (MPC) in Pulong Bayabas, San Miguel, Bulacan, and the Federation of Central Luzon Farmers Cooperative (FCLFC) have also asked the president to raise the farm gate price of clean and dry palay (unmilled rice) to P23 pesos per kilo.
Buying palay direct from farmers used to be a major intervention of the former NFA prior to its abolition under the Rice Tariffication Law.
While the financial assistance or "ayuda" is given in cash, the farmers insisted they prefer to be treated with fairness since the "ayuda" is only given arbitrarily.
"Not everyone gets to receive ayuda. Only those that are close to power. But when palay price is raised to P23 pesos per kilo at farm gate, that benefits all farmers," said Atanacio Santos of the Mabandi MPC, adding that only 75 percent of farmers get to receive aid.
The Philippines' food security problems can be significantly solved if government assures farmers of this palay market, adding that providing a stable farmers' market is a function that has been practiced by countries with progressive, profitable agriculture sectors, the farmers' groups said.
"Kung talagang magnanais tayo na magkaroon ng sapat na pagkain ay ipatupad natin ito at hindi puro salita lamang," (If we really want to have food sufficiency, let us implement this, and not just pay lip service)," said the rice farmers in an open letter. "Ang patuloy na pagwawalang bahala ay hudyat ng kamatayan ng pangsakahan, patuloy na maghihirap ang mga magsasaka, at tuluyang mawawalan ng pagkain ang taong bayan." (If our appeal is ignored, this could mean a death knell to agriculture, worsening poverty for farmers, and food insufficiency for our people )
According to Simeon Sioson, FCLFC chairman, the increase of palay to P23 per kilo already covers all costs of production including those for seeds, fertilizer, and irrigation. Farm gate price has dropped to P18 to P19 per kilo and even hit a very low level at P10 to 14 per kilo. This has caused huge losses for farmers and compelled many farmers to give up tilling their land.
"The P23 per kilo farmgate price will cover all increases in costs in the market including those for the higher price of fertilizer now, diesel, and pesticides," said Sioson. But aside from farmers, the government will also be a big beneficiary since the government can collect additional value-added tax (VAT) which may then be used to subsidize the cost of rice for consumers.
Prior to the Rice Tariffication Law (RTL), the poor used to depend on cheap NFA rice as their staple. "Now there is no more P27 per kilo NFA rice." Trade liberalization advocates said NFA's rice subsidy function for consumers renders it bankrupt, dependent on huge loans, and non-compliant to free market principles.
But Danilo V. Fausto, Philippine Chamber of Agriculture and Food Inc. president, said NFA is not supposed to be profit-making like private companies. "NFA's purpose is not to make a profit (but intervene and assist the rice sector)," said Fausto.
But with the P23 per kilo farmgate price, the government will even hit its targeted P20 per kilo price at the consumers' market-- given government subsidizes rice price for all using the additional VAT it collects.
Sioson said the government should strictly monitor the Philippines' rice shortfall. This will prevent any excess in domestic rice volume that causes further rice competition to farmers.
"Importation only benefits farmers in Vietnam and Thailand. We should rather protect our farmers. Only the shortfall should be imported," Sioson said.
Even the government's buffer stocking function for the lean months, with an inventory level required at 30 days, will be addressed through higher production from incentivized farmers.
"Our rice sector will flourish. Everybody will benefit," said Sioson.
Mabandi MPC and FCLFC also said the government should take into consideration the many climate disturbances adversely affecting farming.
"Tinatamaan din kami ng climate change tulad ng mga bagyo, pagbaha at kung minsan tagtuot. Apektadong apektado rin kami ng inflation. Dahil sa kasalukuyang tagtuyot sa China, apektado din ang mga bansang Vietnam, Cambodia, at Thailand--dala ng mababawasan ang tubig galing sa China. Babagsak (lahat) ang kanilang produksyon." (We are also affected by climate change including typhoons, flooding, and sometimes drought. We are also severely affected by inflation. The drought in China also affects Vietnam, Cambodia, and Thailand which suffer from the lower levels of water from China, Their production will also decline.)