News Details

Senate Pushes Major Reforms to Rice Tariffication Law, Seeks Restoration of NFA’s Price-Stabilizing Powers

NPO

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October 15, 2025

MANILA – The Senate Committee on Agriculture, Food, and Agrarian Reform is moving to overhaul the Rice Tariffication Law (RTL) and restore key powers of the National Food Authority (NFA) to stabilize rice prices and protect Filipino farmers from the adverse impacts of import liberalization.

Committee Chair Senator Francis Pangilinan raised alarm over the continued decline in palay farmgate prices — dropping by as much as ₱8 per kilogram — due to the influx of imported rice.

“Kung patakaran at polisiya ang lupang tatamnan ng sektor ng agrikultura, malinaw na lason at hindi pataba ang naging epekto ng Rice Tariffication Law,” Pangilinan said, comparing the RTL to a “poison” that harmed rather than nurtured Philippine agriculture.

Pangilinan also cited mounting reports of price manipulation, warehouse irregularities, and the diminished role of the NFA in protecting both producers and consumers.

Executive Support for Legislative Overhaul

The senator disclosed that Agriculture Secretary Francisco Tiu Laurel Jr. has likewise called for a comprehensive RTL overhaul to improve government interventions, strengthen extension services, and modernize NFA operations.

He said the executive and legislative branches have reached a consensus to pursue amendments to the RTL. Pangilinan has met with President Ferdinand R. Marcos Jr., House Agriculture Committee Chair Rep. Mark Enverga, and Agrarian Reform Committee Chair Rep. Leah Bulut-Begtang to coordinate reform measures.

Two Executive Orders to Support Reforms

President Marcos reportedly approved the issuance of two executive orders to complement the legislative amendments:

1. Setting a minimum floor price for government palay purchases under the Sagip Saka Act; and

2. Mandating all government agencies involved in food procurement—including hospitals and state universities—to source agricultural products directly from farmers and fisherfolk organizations.

“Through these reforms, we can ensure that government agencies buy at fair prices directly from our farmers,” Pangilinan said.
“With help from government, the private sector, and the farmers themselves, let us build stronger foundations for agriculture and rural livelihoods.”

Background: Why the RTL Faces Scrutiny

Enacted as Republic Act 11203, the Rice Tariffication Law replaced import quotas with tariffs and created the Rice Competitiveness Enhancement Fund (RCEF) to support farmers through mechanization, seed distribution, credit, and training.

However, critics argue that the law depressed farmgate prices and weakened the NFA’s ability to regulate the rice market, prompting broad calls for its revision.

As discussions continue, both chambers of Congress appear ready to pursue a balanced reform framework that protects local farmers while ensuring rice affordability and food security for all Filipinos.

NPO News Team | PNA-PR