Can grandparents stand in for parents, so a child can be baptized?

My son was raised Catholic. He no longer attends Mass or practises his faith yet he is a very good Christian person in every way. He is a single dad and his son who is 8 has been attending Mass with us his grandparents. He has also been attending Religious Education classes for the past three years. The child is asking to receive the sacrament of Batism, his father has no problem with him receiving Baptism. Our priest says unles his father practices his faith the child can not be baptized. As he says the parents are the first teachers, which I agree with on most things.
But it takes a village to raise a child, so why can’t the grandparents be the teacher in this case?

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