Government can now purchase palay at fair price due to NFA reforms, says Romualdez

Changes in NFA regulations are anticipated to lead to fairer palay purchases by the government, preventing farmers from being disadvantaged. Speaker Ferdinand Martin Romualdez emphasized that these reforms aim to make NFA more efficient at providing affordable rice, supporting farmers, and ensuring food security. The proposal includes empowering NFA to procure palay at fair prices directly from farmers and maintain an ample buffer stock to intervene in price spikes caused by various factors like disasters, hoarding, or market manipulation.

Romualdez highlighted the importance of protecting farmers, stating that they are valuable resources who should not suffer losses. By enabling farmers to sell their palay at reasonable prices, the government can help prevent households from experiencing hunger due to expensive rice. The Speaker stressed the significance of NFA’s role in selling rice at affordable prices, acknowledging that assistance is insufficient if rice prices are beyond the reach of ordinary citizens.

The proposed bill, currently under review by the Malacañang after submission by the Department of Agriculture, seeks to restore NFA’s authority to regulate rice prices and intervene directly in the market to enhance competitiveness and lower prices. It also aims to improve palay procurement prices for NFA while maintaining buffer stocks to stabilize prices. Romualdez indicated that the House is prepared to act promptly on the bill upon transmission to Congress, reflecting a collective commitment among House members to address the needs of Filipinos, particularly farmers and consumers affected by rising food prices.

Romualdez emphasized the government’s efforts, led by President Ferdinand R. Marcos Jr., to mitigate high rice prices through the proposed NFA reform bill, aligning with the administration’s strategy to combat inflation, poverty, and supply chain vulnerabilities comprehensively. He described the bill as not merely a reform initiative for NFA but a significant move towards social justice, ensuring strong state support for farmers and safeguarding consumers from price fluctuations due to various factors.

The Speaker emphasized that the bill seeks to benefit both farmers and consumers, aiming for a mutually advantageous outcome through legislative amendments. In the previous legislative session, the House approved a bill amending the Rice Tariffication Law to restore NFA’s key functions, reflecting the government’s commitment to ensuring food security during emergencies such as rice supply shortages or price surges.

If enacted, the bill would grant the Agriculture Secretary authority to declare a food security emergency in cases of rice supply shortages or significant price increases, allowing NFA to intervene and distribute rice directly to consumers. The proposed reforms align with the government’s broader objective of enhancing food security and supporting farmers and consumers during challenging times, emphasizing a holistic approach to addressing economic and agricultural issues.