Imee wants new system to drive rice prices down

Senator Imee Marcos PHOTOS BY RENE H. DILAN

SEN. Imee Marcos on Saturday suggested an alternative method to reduce rice prices as she advocated for the removal of intermediaries in favor of a centralized procurement and distribution system for the staple.

During the House of Representatives’ review of the Rice Tariffication Law (RTL), demands to broaden the NFA’s responsibilities were raised.

Marcos pushed for the elimination of middlemen and the resurrection of the long-forgotten NFA-FTI-Kadiwa (National Food Authority-Food Terminal, Inc.- Kadiwa) system.

She referred to the 1970s national food security program, which included NFA’s direct procurement of local farm products, their centralized gathering and distribution by Food Terminal Inc., and their sale at reduced prices in Kadiwa retail outlets.

In 1973, the world was in the throes of an oil crisis. Commodity prices skyrocketed, reaching levels that were unattainable for the average person. The cost of moving goods from farms to markets tripled, leading to decreased food supplies. It was a period of scarcity and difficulty.

Amid this crisis, a new concept emerged — a system to sell seven essential commodities at government-controlled rates. This idea served as a ray of hope, a much-needed support for those struggling to survive.

On April 14, 1980, the inaugural Kadiwa Center was set up at the FTI Complex. The term “Kadiwa” embodied unity and a sense of belonging in the local language.

This center offered essential commodities at reasonable prices, which was made feasible by bulk purchasing at discounted rates.

At the time, the Kadiwa Center acted as a conduit between producers and consumers, with only the FTI and NFA as intermediaries. This ensured that only handling and transport expenses were added, thus maintaining low prices.

“The government’s price monitors won’t need to play cat-and-mouse with wet market retailers, thus better guaranteeing the lowest rice prices,” the senator argued.

Rice farmers affected by drought due to El Niño have raised fears of leaner local harvests, a tighter NFA rice buffer stock, and higher Filipino food staple retail prices.

As the Lower House sought to amend the RTL, Marcos credited the law for lowering rice prices during its first year of implementation.

“It was unduly demonized when rampant rice importation later pulled down farmgate prices of palay amid rising production costs. Many rice farmers were forced to abandon their livelihoods. We can introduce some safeguards into the law to make it more responsive to the current situation without completely overhauling it,” she said.

Senator Marcos has called attention to her amendments to Republic Act (RA) 8178, or the Agricultural Tariffication Act, which she proposed in Senate Bill (SB) 642.

SB 642 emphasizes the need for financial assistance to farmers displaced by wholesale importation.

When an excessive supply of imported or local rice causes a price crash, the bill also gives the President the power to stop importation until supply and prices stabilize.

“We should not forget the interests of farmers when consumers clamor for lower prices,” Marcos pointed out.