DA to tap buffer fund for stockpile of products

MANILA, Philippines — The Department of Agriculture (DA) is planning to use its buffer fund to build stockpiles of “sensitive” products such as rice and pork to ensure public access to affordable food in the market.

This was indicated by DA Assistant Secretary Paz Benavidez II during yesterday’s briefing of the House committee on trade and industry on the status of the implementation of Republic Act 11203 or the law liberalizing the importation, exportation and trading of rice.

Benavidez was responding to a proposal of ACT-CIS party-list Rep. Erwin Tulfo for the National Food Authority (NFA) to be allowed to sell rice in the market to make the commodity more accessible to the Filipino people.

Tulfo pointed out that the Rice Tarrification Law (RTL) prohibits the sale of NFA rice in the market.

“Can we do something about it because this is what people are looking for? They want to buy more rice with the little money that they have,” he noted.

The lawmaker has urged the DA to “tinker (with) the RTL a little bit,” underscoring that such prohibition is wrong.

“By taking away the authority or power of NFA to sell rice to public at a lower cost, you also remove the people’s power to buy,” Tulfo added.

According to Benavidez, DA will now exercise this stockpiling function and they have prepared draft implementing rules and regulations (IRR) for this.

“Actually DA Secretary Francisco Tiu Laurel Jr. already signed the IRR so what happens is we will have the buffer fund and we will make sure that we have stocks of sensitive products including rice, pork,” she said.

Benavidez added the NFA could sell in the market but the IRR indicates that the agency could do so only through Kadiwa Centers.

She said the Price Act is intended to address hoarding and price manipulation while the NFA mandate covers emergencies, among other calamities.

“So it is stated there (IRR) that this will be upon the recommendation of the Local Price Council ... This is also subject to the approval of the President,” she added.

Meanwhile, Speaker Martin Romualdez wants traders and middlemen to explain the huge gaps in the prices of agricultural products at farmgate and retail stores.

At a press briefing yesterday, Romualdez said traders and middlemen will be summoned by the House of Representatives in its next hearing to explain why the prices of these commodities are unreasonably higher at retail than farmgate.

“Moderate your greed. Try to be more reasonable (with the pricing). It is not good that the prices of products at the farmgates are very low but you will sell them to the consumers at very high prices. The margin is very bloated,” he said.