MANILA, Philippines — Extending the Rice Tariffication Law’s Rice Competitiveness Enhancement Fund for another six years and tripling its annual funding to P30 billion is “no gift” for a farmers’ group.
The Kilusang Magbubukid ng Pilipinas (KMP) described the amended RTL, also known as the recently signed Republic Act 12078, as a “death sentence” for Filipino rice farmers.
The group argues that while the law aims to reduce rice prices through increased importation, it fails to “directly uplift farmers” and does not prioritize the strengthening of local rice production.
“It is a death sentence for the millions of farmers who toil daily to sustain the country’s food supply,” the group said in a statement on Thursday, January 2.
Department of Agriculture (DA) Secretary Francisco Tiu-Laurel Jr. hailed the extension and increased funding as a “Christmas gift” to farmers and their families. However, KMP also dismisses this claim, calling it an “insult” to the many farmers still living in poverty.
According to the Philippine Statistics Authority, farmers and fisherfolk remain the most impoverished sector in the country, with a poverty incidence of 30% in 2021.
KMP said that extending and increasing the RCEF is only a “smokescreen” concealing the unaddressed problems of Filipino farmers, such as the low palay farmgate prices and lack of affordable agricultural inputs.
What is the rice tariffication law?
The RTL, which was enacted through Republic Act 11203 in 2019, enables rice importers to sell larger volumes of rice in the country by paying tariffs of at least 35%, eliminating the previous cap on imports.
Economic managers have argued that the law will reduce rice prices by increasing the rice supply in the market.
Revenue generated from the tariffs is allocated to the RCEF, which is intended to modernize farm machinery, improve seed production and expand credit assistance to farmers.
With the amended law, the fund hopes to generate and use P30 billion each year for the RCEF.
However, despite the RTL being in effect for several years, rice prices have consistently remained above P50 per kilogram for both local and imported varieties.
“The past five years under RA 11203 and RCEF’s promises of modernization and mechanization did not uplift the local rice industry. RA 12078 will only benefit big traders and machinery suppliers rather than directly uplifting rice farmers,” KMP said.
Lowered tariffs, Kadiwa stores
To reduce rice prices to P29 per kilogram, President Ferdinand Marcos Jr. signed Executive Order 62 on June 20, 2024, lowering the rice tariff to 15% until 2028. This move follows his campaign pledge to reduce rice prices to P20 per kilogram.
The DA also implemented the Kadiwa Rice-for-All program in major public markets to sell around P42 per kilogram of imported rice to marginalized groups, hoping to bring down rice prices.
However, this was also met with criticism from civil society groups and industry experts. They contend that it is unsustainable and does not solve the problem of high rice prices.
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The amended RTL also provides the DA power to declare a national food security emergency, which then allows the National Food Authority (NFA) to release its buffer stocks of rice.
Tiu-Laurel said the emergency is meant to “hurt” price manipulators of rice and stabilize market prices. However, KMP and other groups have warned that declaring an emergency may only facilitate more rice imports.
“This policy contradicts claims of strengthening the Philippine rice industry, as it undermines local farmers by flooding the market with imported rice, further driving down palay farmgate prices, and perpetuating landlessness and indebtedness,” KMP Chairperson Danilo Ramos said.
Ramos also criticized the Rice-for-All program, saying it is an “empty promise” that puts optics on a pedestal to make it seem as if it has supported farmers and consumers.
What do rice farmers need?
All these measures and programs to curb rice prices and mechanize farming in the country, KMP said, are not effective.
The farmers’ group stressed that they need direct subsidies that would allow them to spend less on production costs, such as fertilizer and fuel.
They also urged the government to prioritize providing debt relief to farmers and ensuring their harvests are purchased — and at fair prices.
KMP maintains that the NFA’s authority to regulate imported and local rice prices should be reinstated, a power removed under the RTL.
The group argues that with the NFA’s role under the revised RTL limited to maintaining buffer stocks, the agency’s mandate to support farmers is effectively weakened.
“This not only jeopardizes food security but also sidelines the NFA’s critical function of stabilizing rice prices and ensuring a steady market for farmers’ produce,” Ramos said.
The House “Murang Pagkain” Super Committee in its inquiry has also criticized the DA and economic agencies for their failure to address issues related to agricultural smuggling and price manipulation.
Rice prices. As of Dec. 30, 2024, the DA’s latest report on rice prices in Metro Manila markets shows that local well-milled commercial rice costs up to P52 per kilogram, with only two markets offering it at P40.
Regular milled rice, however, is priced lower, ranging from P38 to P48, with the cheapest price found in only two markets.
Higher-quality rice varieties, both local and imported, can cost between P52 and P63 per kilogram, depending on the grade.
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