“Farmers and consumers are demanding the strengthening of the rice industry as a solution to the perennial rice inflation, now nearing an all-time high rate that is expected to continue until July.”
By LIA MERCADO
Bulatlat.com
MANILA – The Kilusang Magbubukid ng Pilipinas (KMP) called for the repeal of Republic Act (RA) No. 11203 (Rice Liberalization Law) as they urged the government to regain control of the domestic rice industry.
“Farmers and consumers are demanding the strengthening of the rice industry as a solution to the perennial rice inflation, now nearing an all-time high rate that is expected to continue until July,” KMP said in a statement.
The National Food Authority (NFA) reported that its February palay procurement failed to meet targets, as rice traders outbid once more the government agency.
Based on NFA data, the palay procurement process involves farmers delivering palay to NFA, while concerned personnel weighs and classifies palay, then issues a warehouse stock receipt. However, private traders are purchasing palay at P25 to P27 per kilo, much higher than the NFA’s offer of P23 per kilo.
KMP Chairperson Danilo Ramos highlighted the struggles faced by farmers as evidenced by high production cost and low profitability under the current buying rates.
“Farmers are willing to sell to the NFA if only the agency would offer a higher buying price,” Ramos said. He urged the NFA to consider raising the palay buying price to better support local farmers.
KMP said that the government’s liberalization policy has disproportionately empowered private traders, allowing them to dominate the market in terms of supply and pricing. “Rice farmers, on the other hand, are now reeling from the dire effects of drought and dry spells affecting their palay production and harvests.” This has resulted in reduced yields and increased hardship for rice farmers, KMP stressed.
The NFA’s rice inventory stands at just over a day’s buffer stock, with expectations of continued scarcity. Under the Rice Tariffication Law, the agency must keep rice inventory enough to accommodate 15 to 30 days of national rice consumption.
Ramos criticized the government’s reliance on rice importation as a makeshift solution. “It is easy and convenient for the government to rely on importation to ensure rice supply but importation and liberalization are what’s causing the cyclic rice crisis,” he said.
For Ramos, a comprehensive development plan for the rice industry would be more helpful. He said that the plan should include proposals for protecting rice lands, supporting farmers with inputs and credit, expanding irrigation, and enhancing post-harvest facilities.
“The government must significantly subsidize the cost of palay production. However, it gave free rein to rice traders to control the rice industry,” Ramos said while pressing for immediate action to safeguard the local rice industry to ensure a stable food supply. (RTS, DAA) 
