Iloilo board seeks review of NFA mandate, PHP 20 rice

By Mariela Angella Oladive

The Iloilo Provincial Board has urged the national government to review the country’s rice procurement, distribution and regulatory framework, citing the limited mandate of the National Food Authority (NFA) under the Rice Tariffication Law and concerns over the PHP 20-per-kilo rice program.

The call was made through a resolution adopted during the board’s regular session on Jan. 27, following the presentation of Joint Committee Report No. 2026-01 by Board Member Jason Gonzales on behalf of the committees on economic affairs and investment, and agriculture.

The joint committee said that while the PHP 20-per-kilo rice initiative remains an active government program, stronger policy alignment is needed to ensure affordable rice for consumers while guaranteeing farmers a living wage.

The report stemmed from a privilege speech delivered on Oct. 7, 2025, by Iloilo 4th District Board Member Rolando Distura, who raised concerns over what he described as an “unjust price for farmers’ sweat and sacrifice.”

In reviewing local conditions, the committee noted that Iloilo province has exceeded the legally required rice buffer stock mandated under Republic Act No. 11203, or the Rice Tariffication Law, which redefined the NFA’s role primarily to buffer stocking for emergencies.

The NFA has fully utilized its five warehouses in the province and has leased two additional facilities in Leganes, Iloilo, to accommodate the surplus.

As of November 2025, the NFA had procured more than 253,000 bags of palay, in addition to existing buffer stocks totaling about 1.3 million sacks, sufficient for an estimated 36 days of consumption, well above the 15-day minimum requirement under the law.

Despite the surplus, the committee found that significant volumes of rice remain idle in warehouses because the NFA’s mandate is now largely confined to emergency buffer stocking, while commercial distribution is handled by other agencies through third-party logistics providers.

“This arrangement has caused operational inefficiencies,” the committee said, adding that restoring the NFA’s calibrated role in commercial distribution would enable faster market intervention, revive stable procurement cycles and strengthen regional food security.

The joint committee also found that the PHP 20-per-kilo rice program is misaligned with prevailing market conditions.

Rice under the program is sourced by the Department of Agriculture from the NFA at a farmgate price of PHP 33 per kilo, requiring substantial subsidies from both national agencies and local government units.

Under the current scheme, LGUs shoulder subsidies of up to PHP 6.50 per kilo, a burden the committee described as unsustainable, particularly for fiscally constrained municipalities.

The setup has resulted in uneven implementation of the program, with wealthier LGUs better able to participate than lower-income local governments.

The provincial board also cited inconsistencies in subsidy schemes across government agencies, noting that some national programs procure rice at lower prices with subsidies fully covered by national funds.

Through the resolution, the board called on the Department of Agriculture, the NFA and other concerned agencies to conduct a comprehensive review of policies governing the acquisition, storage, transport, sale and distribution of rice.

It also urged the national government to consider restoring the NFA’s authority to sell and distribute rice to strengthen price stabilization and food security, and to reassess the PHP 20-per-kilo rice program by aligning its pricing targets and funding structure with current market and fiscal realities.

National agencies were further requested to submit, within 90 days, a report detailing the results of the review, proposed reforms and measures to address distribution inefficiencies.

The committee emphasized that balanced reform—rather than a full reversal of rice liberalization—is needed to address food security concerns while safeguarding both farmers and consumers.