THE National Economic and Development Authority (Neda) confirmed that the Economic Development Cluster (EDC) wants to strip the National Food Authority (NFA) of all its regulatory functions and limit its function to buffer stocking.
Socioeconomic Planning Secretary Ernesto M. Pernia confirmed this to the BusinessMirror after the EDC meeting late Tuesday, which had as primary agenda the shift to a rice tariffication system from the quantitative restriction (QR) mode.
Such conversion will essentially expand the changes in the NFA’s functions under the proposed bill to tariffy rice. The House of Representatives had earlier approved the bill on third and final reading, but did not change the NFA’s functions. The Senate version is still pending but contains the removal of NFA’s function to issue import permits.
Meanwhile, Trade Secretary Ramon M. Lopez told the BusinessMirror on Tuesday the tariffication of rice and the fast-tracking of the NFA’s processes will boost the government’s efforts in slowing inflation.
“Yes, we acknowledge that there is an NFA mandate according to the law, but with the directive of the President, the idea is really to facilitate, approve and issue the import permit immediately.
That’s the idea. That’s the bottom line. Approve it immediately because time is of the essence,” Lopez told the BusinessMirror.
Lopez said the President’s instruction is to act on the high commodity prices being experienced in the country in the past few months. The aim is to bring down rice prices to P38 a kilo and for sugar prices to P50 per kilo.
Meanwhile, Lopez assured consumers that Noche Buena items will remain affordable during the holidays. He said that Noche Buena items that will see increase in prices are mostly high-end brands.
This will not affect inflation, since only rich households that are not sensitive to price increases will be affected. Lopez said the low-end brands and staples like pasta and tomato sauce are not expected to see any increase in prices.
“Once we implement what we’re supposed to implement, it [rice and sugar prices] will not be affected by the holidays. The more you should implement it [fast-track importation] asap because of the coming holidays,” Lopez said.
Inflation forecast
The Development Budget Coordination Committee (DBCC) on Tuesday revised its inflation forecast to 4.8 to 5.2 percent this year, and 3 to 4 percent in 2019.
The DBCC kept inflation forecasts from 2020 to 2022 at 2 to 4 percent, consistent with the government’s assessment that inflation will go back to the target level by next year.
The Philippine Statistics Authority reported inflation surged to a nine-year high of 6.7 percent in September. Inflation in the previous month was pegged at 6.4 percent and in September 2017, 3 percent.