THE chairman of the Senate Committee on Economic Affairs is mulling over an option to push passage of remedial legislation to abolish the National Food Authority (NFA). Sen. Sherwin T. Gatchalian is also thinking of asking the government to allow rice imports to stabilize rice-supply situation but under strict monitoring to avert smuggling.
Gatchalian indicated over the weekend that he is inclined to support the recommendation of economic managers to let market forces determine rice prices given that the NFA is in the red.
Citing reports reaching his committee that NFA’s accumulated losses add up to almost P150 billion, the senator suggested: “Let us just remember that, if one government agency is losing money, we are all paying for that.”
“As taxpayers, we are the ones providing subsidy to losing government corporations,” he added.
Gatchalian emphasized the need to quickly address the rice-supply situation, citing reports reaching his office that “lack of cheap rice” is triggering price increases, blaming this on the NFA for “not doing its job.”
“We conducted our search in the markets for NFA rice but found none,” the senator said, recalling that during a previous public hearing the Senate committee was also informed there is “no monitoring scheme” to keep track of rice-supply situation.
Alternative proposals
GATCHALIAN indicated he favors an alternative proposal to “let the market dictate the price of rice, like oil which was deregulated and allow importation.”
“Let us also look at the abolition of the NFA and allow rice importation but continue monitoring to avoid those taking advantage,” he added, noting that “smuggling is caused by high price of local supply.”
“If we allow the entry of imported rice, it will stop smuggling.”
Gatchalian acknowledged that, out of 70 provinces, 40 of them are rice producing and already competitive.
“That is why rice tarrification will aid the 40 to make them more competitive,” he added.
At the same time, the senator indicated that the Senate Economic Affairs Committee was not “isolating” the Duterte administration’s Tax Reform for Acceleration and Inclusion, pointing out there are other factors pushing price increases of basic commodities.
”One of the problems that I can see [in the short supply and rising price of rice] could be traced to the operations of the NFA,” Gatchalian said.
He disclosed that before conducting the Senate hearing, he directed added his staff to look for NFA rice in the markets “but found none. Wala silang nahanap na [They can’t find] NFA rice.”
The Senator asserted that the NFA has two most important responsibilities: “first, price stabilization to ensure it does not jack up and, second, availability of rice; because it is important that they can buy it at prices that poor people can afford.”
Gatchalian noted, however, that there appears to be “no monitoring scheme in buying NFA rice” based on testimonies during the Senate hearing.