“Walaa ninyo ang kahadlok (Take away your fears). If there’s adverse effect on this (law), it is only temporary.”
Department of Agriculture (DA) secretary Emmanuel “Manny” Piñol reminded farmers and traders during the Consultation with Stakeholders on the Rice Trade Liberalization Law Mindanao Cluster held at the Grand Regal Hotel on Thursday, February 28.
Some 300 stakeholders and farmers from Mindanao attended the forum which focused on the controversial Republic Act (RA) 11203 or the Rice Tariffication Law, an act liberalizing the importation, exportation, and trading of rice, lifting for the purpose the quantitative import restriction on rice that was signed by President Rodrigo Duterte on February 14.
“We may not understand for now why the president signed this, but we just have to trust him, we must have faith in him,” Piñol said.
An influx of cheap imported milled rice that could result to lowering of wholesale price and lowering farm gate price, said Piñol, are the main possible impacts of rice liberalization. There had been some speculations the law could lead to oversupply of imported rice.
“Kung nakulbaan mo na bahaon ta ug imported na bugas, dili dapat kay each year naga increase atoang population. Paphaa ang kahadlok kay if there is adverse effect, it is only temporary,” he explained.”If time comes mag baha na ug imported na bugas, this law can always put utmost 180 percent tariff and I’m pretty sure wala’y tarong ug utok na magpa sulod ug ingana kadako ang tarrif ang i-impose,” he explained.
The law will be take effect beginning March 5.
However, the National Food Authority (NFA) thinks otherwise. NFA legal chief lawyer Ma. Theresa Villaflor said it is the agency’s dooms day, She said NFA’s major functions will all be repealed on that day.
“We are mainly affected by this law. The only thing we can only perform is buffer stocking. And this function is only essential if may calamity. If walang calamity, wala kaming gagawin,” Villaflor said adding that the law will put NFA’s more than 4,000 employees in jeopardy.
Piñol, meanwhile, said he sincerely understands the NFA’s sentiment but reiterated that the law has already been signed and “it has to be implemented.” Piñol said DA only promised to help the farmers.
“What DA intends to do is to improve competitiveness and farm income, enhance resiliency to disasters and climate risks and ensure access to safe and nutritious rice,” he said.
The DA secretary also urged the farmers to continue planting rice despite the effects the law may afflict on their community.”We cannot abandon planting rice. If you stop planting rice, as if you condemn the next generation,” he said.
Although the law is a commitment of the country to the World Trade Organization (WTO), Piñol said that “we cannot rely solely on the world market for our needs, we need to continue helping our rice farmers and the domestic rice industry.”
Meantime, the funds that will be generated from the rice importers under the Rice Tariffication Law will be allocated for the Rice Competitiveness Enhancement Fund (RCEF) for farmers. The tariff will be pegged at 35 percent for ASEAN member countries while a 50 percent tariff is set for non-ASEAN countries.
This tariff is expected to generate 10 billion each year. 5 billion of it will go for mechanization and implementation for PhilMech. P3 billion will be for the production of high quality seeds while 1 billion will be allocated for other contingency expenses.
Another P1 billion is also allotted for the development and training for farmers particularly P700 million for Technical Education and Skills Development Authority (TESDA), P100 million for Philippine Rice Research Institute (PhilRice), P100 million for Philippine Center for Postharvest Development and Mechanization (PhilMech) and another P100 million for agricultural training institute.
