The Department of Agriculture (DA) said it is considering invoking a food security emergency under the amended Rice Tariffication Law (RTL) to curb rice price volatility.

Such a move, according to DA Secretary Francisco Tiu Laurel Jr., would authorize the release of buffer stocks from the National Food Authority (NFA) to stabilize market prices.

Other measures are also being reviewed as part of efforts to ensure affordability and food security.

As such, Laurel said they are exploring the option of allowing government corporations like Food Terminal Inc., to import significant quantities of rice to compete directly with private importers.

He also ordered the DA legal division to study whether provisions of the Consumer Price Act could be activated to deal with seeming acts of profiteering.

The DA has conceded that the reduction of rice tariffs by President Marcos Jr. — from 35 percent to 15 percent in July — has failed to bring down the prices of some rice brands, drawing discontent from both the government and consumers.

On Tuesday, Dec. 27, the DA claimed market rice retailers started lowering prices following the “successful” implementation of the Kadiwa ng Pangulo “Rice-for-All” program across Metro Manila.

The said program offers rice at ₱40 per kilo.

“Rice being sold by the Kadiwa and its retailers is cheaper by ₱3 to ₱5 compared with those being sold by market retailers, resulting in increased sales by rolling stores in the recent operation,” a news release from the Presidential News Desk stated.

The agriculture department reported that “market retailers are currently reducing their prices to keep up with the lower price offered by rolling stores."

“So far, EDSA Balintawak Market (southbound, Brgy. Balingasa, Quezon City) distributed 110 sacks of rice; New Marulas Public Market (along Market Road, Brgy. Marulas, Valenzuela City), five sacks; and Malabon Central Market (along F. Sevilla Blvd., Brgy. Tañong, Malabon City), 32 sacks,” it stated.

A total of 147 sacks of rice were distributed, based on the government report.

‘Rice emergency’

Earlier, Laurel said that declaring a “rice emergency” could help bring down persistently high rice prices while targeting profiteers.

The idea, initially suggested by lawmakers, follows the failure of recent government measures to stabilize rice prices. 

Under Republic Act 12078, which amended the Rice Tariffication Law, the agriculture chief can declare a food security emergency upon the recommendation of the National Price Coordination Council if there is a supply shortage or extraordinary price fluctuations.

If implemented, the National Food Authority (NFA) will be authorized to release its buffer stocks at appropriate prices to alleviate the crisis. 

NFA Administrator Larry Lacson revealed during a House hearing that the agency currently holds 5.5 million 50-kilogram bags in reserve.

Laurel said the emergency declaration could allow the NFA to release nearly six million bags of rice to the public at flexible prices.

“If declaring a rice emergency allows us to sell NFA’s nearly six million bags of rice at flexible prices to the public, then that’s definitely a good move,” he said after inspecting rice stalls in Guadalupe, Makati.

The DA chief also underscored the measure’s potential to target profiteers.

“If we really want to tackle those exploiting certain rice brands, this is the best way to hit them where it hurts—their pockets,” he added.