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Rice QR lifting to lower prices by P4/kilo — NEDA

Published Jan 6, 2018 12:00 am
By Chino S. Leyco At least 38 rice-producing provinces and a city will have competitive advantage over Thailand and Vietnam should the 35 percent tariff be levied on rice imports and the quantitative restrictions (QR) are lifted. Based on the preliminary analysis of the National Economic and Development Authority (NEDA), price of the Filipinos’ staple food will be cheaper by P4 per kilo once the restrictions on rice imports are relaxed. The analysis, which was conducted by the NEDA Agriculture, Natural Resources and Environment Staff (ANRES), also showed that rice production in at least 39 areas will remain competitive even if the grain is tariffed at 35 percent. “Rice per kilogram in these areas will be P4 cheaper compared with Thai and Vietnamese rice. And these provinces can produce about 73 percent of the total food requirement of the country,” Socioeconomic Planning Secretary Ernesto M. Pernia said in a statement. The areas deemed competitive are: Nueva Ecija, Kalinga, Pampanga, Bataan, Biliran, Bulacan, Zamboanga del Sur, Isabela, Bukidnon, Nueva Vizcaya, Laguna, Pangasinan, Lanao del Norte, Aurora, Compostela Valley, Albay, Leyte, Zamboanga Sibugay, and Negros Occidental. Likewise, South Cotabato, Camarines Sur, Zamboanga City, Sultan Kudarat, Sorsogon, Cavite, Palawan, Antique, Iloilo, Aklan, Surigao del Sur, Capiz, Masbate, Catanduanes, Eastern Samar, Northern Samar, Basilan, Western Samar, Guimaras, and Maguindanao were also included. ANRES, meanwhile, noted that among these areas, 14 have an average yield of only 3.5 metric tons per hectare, which is below the national average of four metric tons per hectare. These provinces are Palawan, Antique, Iloilo, Aklan, Surigao del Sur, Capiz, Masbate, Catanduanes, Eastern Samar, Northern Samar, Basilan, Samar, Guimaras, and Maguindanao. By producing rice at lower costs, Pernia said these provinces can still further increase their yield levels by using certified inbred and hybrid seeds, proper management of input application and sufficient irrigation. NEDA said that in order to be competitive, rice-producing areas should reduce the cost of rice production by mechanizing labor-intensive farm activities, using new and appropriate technologies and applying farm management practices. Apart from these, NEDA suggested measures to boost competitiveness, including constructing more irrigation systems, addressing gaps in infrastructure connectivity, improving farmers' access to affordable credit insurance, and adopting measures to enhance agriculture's resilience to climate change, among others. The QR on rice imports is a special privilege granted by the World Trade Organization (WTO), which has been extended three times since it was first imposed in 1995. In April, 2017, before the termination of the WTO Special Treatment on rice, President Duterte issued Executive Order No. 23 retaining the MAV level of 805, 200 metric tons. He also extended the lower tariff rates imposed on some commodities for three years or until the Agricultural Tariffication Law is amended. NEDA is pushing for the amendment of the Republic Act No. 8178 or the Agricultural Tariffication Act of 1996 to pave the way for the removal of the QR on rice imports and the imposition of the 35 percent tariff rate instead. “The revenue from the 35 percent tariff can be used to supplement available government funds to develop the agriculture sector and bring it at par with our Asean counterparts,” Pernia said.
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