Rice tariff collections hit P30 billion in 2023

MANILA, Philippines — Tariff collections from 3.6 million metric tons of rice imports likely reached a record P30 billion in 2023 on the back of a weaker peso and higher global grain prices.

Preliminary data from the Bureau of Customs (BOC) showed that the latest figure was 30 percent higher than the previous year’s P22.8 billion.

It was also P20 billion higher than the mandated annual appropriation of P10 billion to fund programs for farm mechanization, seed development, propagation and promotion, credit assistance and extension services.

The BOC is required to certify its total rice tariff collection from the preceding year not later than April 15.

Under existing laws, any excess in tariff revenues due to the Rice Tariffication Law (RTL) is allocated to finance the Department of Agriculture (DA)’s direct financial assistance program to rice farmers tilling no more than two hectares of land.

DA spokesperson Arnel de Mesa said the department would engage with industry stakeholders to discuss how to use the excess revenue from the RTL, since it could be higher than the the total funding needed to cover the present number of registered rice farmers.

De Mesa said they would wait for the BOC’s certification in the coming months before taking the necessary steps forward.

“We have to wait for the official figures coming from the BOC. We do not know yet the official amount of collections from last year, which we would expect to be certified by March or April,” he told The STAR.

“From there, the (DA) secretary will decide what we are going to do in consultation with all the stakeholders,” he added.

Federation of Free Farmers national manager Raul Montemayor said that the DA should use the excess tariffs to establish common service facilities like post-harvest equipment to improve the competitiveness of the rice farmers.

“The (financial) assistance has just become like 4Ps (Pantawid Pamilyang Pilipino Program). If we are talking about improving competitiveness, that is gone,” Montemayor said.

Philippine Chamber of Agriculture and Food Inc. president Danilo Fausto proposed that the excess tariffs must be used to shift non-competitive rice farmers to planting profitable commodities like high-value crops, which he emphasized was the original wisdom of the Rice Trade Liberalization (RTL) Law.

Fausto explained that this could involve providing planting materials, production technologies, post-harvest facilities and logistical equipment.

“We go back to the original (wisdom of the RTL Law). They will just become mendicant if you just continue giving them cash assistance,” he said.

Customs data showed that rice import volume last year fell from the record amount of over 3.8 million metric tons in 2022. However, the 2.37 percent weakening in the average peso-dollar exchange rate coupled by the 38 percent year-on-year hike in the value of rice shipments offset the drop in total import volume to lift overall tariff collections.