By TED CORDERO, GMA Integrated News

The Department of Agriculture’s (DA) proposal to have a buffer fund it can use to procure rice and other critical agricultural commodities for stockpiling, which it can later dispose of and sell at lower prices in case of supply shortage or to counter price manipulation, has been approved in principle. 

“Sa ngayon [for now], in principle it is already approved. We are looking for the funding source… There are several options,” Agriculture Secretary Francisco Tiu Laurel Jr. told reporters at the sidelines of the European Chamber of Commerce of the Philippines’ (ECCP) Sustainable Agriculture Forum in Makati City on Thursday.

“But for next year, we are almost sure that we can get that P5-billion buffer fund to be able to use in case we have to trigger the price action,” Tiu Laurel said.

In April, the DA bared that it has asked President Ferdinand “Bongbong” Marcos Jr. to grant the agency a buffer fund that it can use to buy rice and other agricultural commodities which will be later sold at lower prices. 

Tiu Laurel earlier said that Section 9 of the Price Act allows the agency to have a buffer fund that it can tap to procure or import rice or any other agriculture prime commodities and basic necessities.

The Implementing Rules and Regulations (IRR) for Section 9 of the Republic Act No 7581 or Price Act was signed by Tiu Laurel on July 5, 2024.

Under the IRR, the stockpiled commodities shall be distributed at “reasonable prices” in areas determined to have shortage of supply or “where there is a need to effect changes in the prevailing prices” through the following distribution channels:

• Retail outlets, organized women’s groups and cooperatives registered with the Cooperatives Development Authority and accredited by the DA 
• Outlets run by consumer groups and similar associations 
• KADIWA stores, centers, and outlets 

Tiu Laurel said that the type of commodity to be stockpiled using the buffer fund depends on a “trigger point” or if there is a sudden spike or decrease in the price of a certain produce.

“It will go through the NPCC (National Price Coordinating Council)… it depends on the commodity, [but] we are seriously looking into rice,” the Agriculture chief said.

The Price Act was enacted to stabilize the supply and prices of basic necessities and prime commodities, to safeguard consumers against unreasonable price hikes, and ensure fair practices within the market. 

The DA was identified as the lead agency tasked to stabilize prices of agricultural crops, fish and other marine products, fresh meat, fresh poultry, dairy products, fertilizers and other farm inputs during emergencies. —KBK, GMA Integrated News

Published Date: September 26, 2024