A policy “disaster” is crippling the Philippine rice industry, with losses to farmers now dwarfing the economic damage of a super typhoon and prompting urgent calls from agricultural experts to repeal the existing Rice Tariffication Law (RTL) and replace it with a more comprehensive measure.
The Crisis: A Policy-Induced Disaster
According to an analysis by Dr. Teodoro “Ted” C. Mendoza, a retired professor and UP scientist, the price of palay (unmilled rice) has plummeted to as low as ₱8 per kilogram. This collapse has resulted in a catastrophic income loss for Filipino farmers exceeding ₱250 billion—a figure four times greater than the damage caused by Super Typhoon Yolanda in 2012.
Dr. Mendoza identifies the root cause not as a simple market failure, but as a “policy-induced disaster” stemming from the structural flaws of the Rice Tariffication Law (RTL) enacted in 2019. The law dismantled the National Food Authority’s (NFA) power to intervene in the market and liberalized rice imports, leaving local farmers exposed to global price shocks without sufficient protection.
Why RTL is “Irreparable”
Despite amendments that tripled the Rice Competitiveness Enhancement Fund (RCEF) to ₱30 billion, experts argue the law is fundamentally flawed. Its design is said to privilege importers, weaken incentives for domestic production, and ultimately undermine the country’s national food sovereignty.
The Proposed Solution: The Rice Industry Sustainable Development Act (RISDA)
In response, a new, systemic law is being proposed: the Rice Industry Sustainable Development Act (RISDA). Advocates present RISDA not as a minor policy tweak, but as a complete overhaul designed to rebuild the rice sector. Its core components include:
Guaranteed Procurement and Price Stabilization: RISDA mandates the government to purchase a minimum of 20% of the national palay harvest at a floor price of ₱25 per kilogram. This is designed to ensure farmers a net return of at least 30% above their production cost. The NFA would be repositioned as a proactive market stabilizer.
Farmer Empowerment and Income Floor: The law institutionalizes a dynamic floor price, calibrated to costs and inflation. It aims to guarantee a farmer producing 5 tons per hectare a net income of ₱50,000 per hectare per crop.
Curbing Excessive Imports: A key provision is the “rice import parity clause,” which requires importers to purchase 60% locally grown rice for every 40% of their import volume. This is intended to boost demand for domestic palay and prevent speculative importation.
Reviving the Quedan System: The law would revive the “quedan” or warehouse receipt system, allowing farmers to store their palay and use the receipts as collateral for loans. This prevents them from being forced to sell immediately at low post-harvest prices.
Climate Resilience and Modernization: RISDA goes beyond subsidies, mandating the construction and rehabilitation of irrigation systems, post-harvest facilities, and farm-to-market roads. It also embeds climate resilience by incentivizing soil regeneration, low-emission practices, and the development of local seed banks.
Strategic Governance and Buffer Stocks: The proposal creates a National Rice Sustainability Council (NRSC) to ensure policy coherence. It also aligns the national buffer stock with international best practices, maintaining a 90-day rice reserve to guard against emergencies and price volatility.
A Moral and Strategic Imperative
Dr. Mendoza concludes that RISDA is a “forward-looking, systems-based reform” that corrects the failures of the RTL. It is presented not just as a legislative proposal, but as a “moral imperative and a strategic necessity” to restore the dignity of farmers, empower rural communities, and reclaim rice as a pillar of Filipino self-reliance.
The call is clear: with the agricultural sector reeling from massive losses, the time to act and replace the current law is NOW.#
