DOF sees no need to amend rice tariff law

MANILA, Philippines — The government will not repeal nor suspend the implementation of the Rice Tariffication Law, as measures are already being implemented to address the challenges posed by the law to rice farmers, according to the Department of Finance (DOF).

While emphasizing the benefits of Republic Act 11203 or the Rice Liberalization Act, Finance Secretary Carlos Dominguez also acknowledged that the law has brought some “short-term transition challenges,” particularly the drop in farmgate price of palay in some areas.

Nevertheless, Dominguez expressed confidence that these issues are only “temporary,” especially with the government already starting to take action to provide relief to rice farmers.

As such, he said the government is not considering any moves to repeal, amend, nor suspend the measure.

“We are confident that these transition challenges are temporary. Nevertheless, the government is responding to them with decisiveness. There is no inclination to repeal, revise or suspend the Rice Tariffication Law,” Dominguez said in his speech during the 11th World Rice Conference in Makati City.

To cushion the negative impact of the law, Dominguez said the government is constantly monitoring prices so that interventions may be deployed to areas that are in need.

He said some agencies are also working with Congress to provide unconditional cash transfers to affected rice farmers and distributing rice as part of a subsidy program for disadvantaged families.

The finance chief said the Department of Agriculture is also working on the implementation of the Survival and Recovery or SURE-aid program – a P15,000 interest-free loan payable over eight years.

“Complementary programs include the procurement of paddy rice above production costs by local governments, and the provision of loan programs to enable local governments to buy this season’s harvest from domestic producers,” he said.

The finance chief said the government is also closely monitoring possible distortions in the market, particularly the widening gap between farmgate prices for paddy rice and rice retail prices in specific provinces.

He said the Bureau of Internal Revenue and the Bureau of Customs have formed strike teams to look into possible smuggling and hoarding activities, as well as tax evasion.

Over the next months, Dominguez said the government’s anti-smuggling and anti-hoarding efforts would also intensify as the DA and the Philippine Competition Commission investigate possible collusion to undermine the market. He said President Duterte has also issued instructions to investigate and prosecute those involved in economic sabotage.

“We will never return to the old regime of unstable rice supplies, high retail prices, profiteering, and low productivity. This is not the future of our agriculture. We should let the Rice Tariffication Law do its work and give the economy time to adjust for further easing of rice prices for all Filipinos and for support programs to lower production costs of our farmers,” Dominguez said.

Meanwhile, the finance chief said additional government revenues from the implementation of the Rice Tariffication Law has reached P11.4 billion from March 5 to Oct. 31.

He said this has already exceeded the P10 billion needed for the Rice Competitiveness Enhancement Fund (RCEF), giving the government more resources to support rice farmers and improve their productivity and competitiveness.

“Tariff revenues in excess of P10 billion will be earmarked for financial assistance, titling of agricultural lands, expanded crop insurance programs, and crop diversification initiatives,” he said.

Republic Act 11203 or the Rice Liberalization Act opened up the importation of rice imports in the country by imposing tariffs in lieu of quantitative restrictions.

The law also provides for the creation of the RCEF, which is set at P10 billion annually for six years, for programs to boost productivity and global competitiveness of Filipino rice farmers.

Specifically, the fund will be used for the provision of post-harvest equipment to farmers, the development and distribution of seeds, the provision of credit, and for the training of farmers.