Government aid urged for farmers amid falling rice prices

MANILA, Philippines — The government is being urged to immediately pass measures aimed at aiding farmers amid plunging prices of palay (unhusked rice) following the liberalization of the rice industry.

Research and advocacy group Action for Economic Reforms (AER) called on President Duterte to order both chambers of Congress to postpone their month-long recess and immediately convene for special session to act on resolutions that will help rice farmers cope under the current rice trade regime.

Senate Joint Resolution 2, sponsored by Francis Pangilinan, authorizes the use of the Rice Competitiveness Enhancement Fund, as special emergency fund for affected rice farmers.

On the other hand, Senate Joint Resolution No. 8, authored by Senators Miguel Zubiri and Cynthia Villar, seeks to allow the Department of Social Welfare and Development to convert to actual rice the rice subsidy amounting to P600 per month, which currently takes the form of financial assistance under the government’s Pantawid Pamilyang Pilipino program.

“As both houses adjourn for a month-long recess, the immediate problem afflicting the Philippine agriculture sector remains unaddressed. We plead to legislators to hold hearings and conduct plenary debates to put in place these emergency measures,” AER president Jessica Cantos said.

“The farmers need relief now, as next year, they might no longer go into farming,” she said.

The Rice Tariffication Law was passed to correct an inefficient rice importation regime. Shifting trade barriers from quantitative restrictions to tariffs has helped lower inflation and has improved the Bureau of Customs’ tax take since the law was signed in March.

Any amount above P10 billion generated by the tariffs can be used for cash transfers to farmers.

“But admittedly, the law is rigid with regard to the allocation of the initial P10 billion for the Rice Competitiveness Enhancement Fund. SJR No. 2 somehow addresses that rigidity,” AER economist and coordinator Filomeno Sta. Ana said.

The Senate approved on second reading SJR No. 8 last week. If Malacañang certifies this measure as urgent, the legislature may be compelled to hold sessions during the break.

Otherwise, Congress will resume consideration of the measure when sessions formally reopen after the break on Nov. 4.

“By then, bulk of the second cropping rice harvest would have happened. And with no relief on declining palay prices, Congress which took a month-long break will be remiss in its duty of safeguarding our agriculture producers’ interest,” Cantos said.