Rice Import Tarrif

What is Rice Import Liberalization Law? A measure that will allow unimpeded importation of rice, amending the Agricultural Tariffication Act of 1996 and replacing the quantitative restriction on rice imports.

OUR RESERVATIONS: 

The proponents believe that we will be able to mechanize fully within six years. How do we bridge the transition period? We're opening up to a new bunch of players, and we have not really prepared our farmers. Six years is a long period. By then, they may have already sold their land. There is no provision in the law on the safeguards for small-scale farmers when their products compete with the influx of imported rice products. We also need to consider that there is a sizeable local industry on rice by-products (such as feeds). How will these potentially impact them?

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Essentially, while this bill is being advanced, the government has not moved an inch on the National Land Use Bill, which would have rationalized land use planning all over the country and prevent the undue conversion of land. This should complement the other. The fact that Sen. Villar is actively pushing for this (and is not hearing NLUA) casts doubts.

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The bill specifically provides support for farmer associations. What will happen to those without? There is no provision to organize rice farmers, or even reference of the bill to the need to invest in organizing these farmers so they can avail the services.

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How will this not duplicate services that are already being amply provided in some areas (while there are none in other areas)? How do we ensure (considering the current norm in the government) that this will not be another "fertilizer fund scam"?

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There is no provision within the 10 billion fund (there is a list of items that the fund can fund) on crop insurance, when we all know that every year disasters claim a significant part of farmers' income.

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The equipment to be procured (as part of the proceeds of the fund) is already stated. There is no room to allow the farmers to identify what they need.

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By removing the quantitative restrictions, imported rice coming from Southeast Asian countries will be slapped with a 35% tariff, while imported rice coming from other countries will be imposed a higher tariff rate.

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Allowing cheaper foreign imports to pour in without preparation for local farmers could hurt their livelihood.

Claim: The negative effects on local farmers.

Evidence: 1) “Last May, however, the Philippine Chamber of Agriculture and Food said that the tarrification law, also known as rice liberalization law, stripped the farmers of P95 billion in income due to the influx of cheap rice. “At the prevailing farmgate price of palay (unhusked rice) which declined by around P5 per kilogram, Filipino farmers are deprived by as much as P95 billion in income. It is based on the country’s local palay production of 19 million metric tons annually,” a member of the organization said.” 2) “Farmer groups clamor that the new law will make them compete with cheap rice imports, making them more penniless. Measures should be in place to ensure that Filipino farmers will not suffer with the rice tariffication law and that "safety nets" are available for farmers. While it has its good points, the lack of government regulation worries stakeholders.” 3) The bill specifically provides support for farmer associations. What will happen to those without? There is no provision to organize rice farmers, or even reference of the bill to the need to invest in organizing these farmers so they can avail the services.

Claim: The subsidies that the local farmers will get. Evidence: 1) “While Sen. Francis Pangilinan wanted a P13-billion cash assistance to farmers, Dominguez said the Department of Finance (DOF) had yet to determine how much money the government could directly give to those affected by the influx of rice imports. “It depends on how much we collect extra. Because our interpretation of the law is that it’s P10 billion, that’s one pot. Anything over that, we can reinvest in the assistance program,” which included cash transfers, Dominguez said.” In conclusion the subsidies that the government will provide to the local farmers in order to “save” them will come from tariffs of importers, and there are over

6,600 registered millers in the country as of early 2019, on top of their own individual expenses the subsidies might not be able to cover the crop insurance.

Claim: The effects of Rice import prices

Evidence: 1) According to Tobias, Annette (2019) There is no guarantee that retail rice prices will be lower in the long run with unhampered importation. Relying on rice imports makes the country vulnerable to higher world market prices as well as to rice production and export decisions of other countries.

Claim:

Evidence: 1) According to Tobias, Annette (2019) Rice imports are cheaper than domestically produced rice. Under a free market, the market price of rice will decline with the influx of cheaper rice imports.