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Manila Bulletin devider Philippines devider National devider Farmers' group warns lawmakers of proposal to subsidize NFA rice sale

Farmers' group warns lawmakers of proposal to subsidize NFA rice sale

Published May 9, 2024 09:01 am

 

Rice.jpeg

The proposal to subsidize the sale of National Food Authority’s (NFA’s) rice to the public is detrimental to the country’s rice farmers, the Federation of Free Farmers (FFF) said on Thursday, May 9.

In a statement, the group stated that proposed scheme could be costly and difficult to manage.

The studies conducted by the FFF showed that the NFA rice subsidy of P10 per kilo will require P31 billion a year to service the 4.4 million poor households covered by the Pantawid Pamilyang Pilipino Program (4Ps).

“If the beneficiaries will include low-income and middle-class households, as proposed by some congressmen, the annual cost would balloon to over P119 billion per year,” the group pointed out.

The aim to stabilize the rice prices is good, according to FFF national manager Raul Montemayor, but he said that “the cost of doing this might become prohibitive.”

Instead of distributing rice, the farmers’ group suggested issuing vouchers, which beneficiaries can use to purchase rice from accredited outlets.

NFA’s aggressive rice distribution, Montemayor said, could end up depressing palay prices for farmers.

“If the NFA sells rice at P10 below the market price, local traders will have to lower their palay buying price by P6 per kilo in order to compete with the NFA,” he said.

On May 5, the Department of Agriculture (DA) said it is backing the proposal to revive NFA’s authority to purchase rice and sell it at a cheaper price.

Speaker Martin Romualdez stated that on April 30, the House of Representatives (HR) will pass a bill revising the Rice Tariffication Law (RTL) to reinstate the NFA's right to buy and sell rice at a lower price, among other improvements.

Romualdez made the statement after the House Agriculture and food panel held its first hearing on proposed RTL amendments.

Based on DA’s price monitoring as of May 7, the cheapest retail price of rice of the National Capital Region (NCR) is P46 a kilo (Local Regular Milled).

Meanwhile, the priciest rice in the metropolis is 65 per kilo (Imported and Local Special).

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