Manila Bulletin
Philippines
DTI: Cheaper rice, higher farmers' productivity are benefits of rice tariffication law
Philippines
DTI: Cheaper rice, higher farmers' productivity are benefits of rice tariffication law
DTI: Cheaper rice, higher farmers' productivity are benefits of rice tariffication law
Published Mar 4, 2020 12:00 am
By Genalyn Kabiling
The public now has greater access to affordable quality rice a year after the implementation of the "game-changing" rice tariffication law in the country, the country's economic team said Wednesday.
Trade and Industry Secretary Ramon Lopez (ALFRED FRIAS/PRESIDENTIAL PHOTO / MANILA BULLETIN)
Trade Secretary Ramon Lopez said prices of National Food Authority (NFA) rice have fallen to as low as P27 per kilo while commercial varieties have dropped to around P34 from a high of P50 last year.
The drop in rice prices and farmers' enhanced productivity are among the reforms resulting from the rice tariffication law signed by President Duterte last year, according to Lopez.
"I also call it ‘game changing’ because while we are able to allow freer importation of rice to ensure an abundant supply of rice, we can keep prices low and with that we were able to see huge benefit for consumers," he said in a Palace press briefing.
"But more than that, this is a law that also benefits iyong (the) farmers. Because as mentioned, the revenues coming from the tariff payments are being converted directly for farmers.”
Lopez said they have observed a "rice deflation" or a drop in prices of the staple in recent months. The rate dropped to negative 6.5 percent in January.
"We continue to monitor the rice section of groceries and markets. Last week, we saw the range in the Mega-Q Mart, former Nepa-Q mart, rice is sold between P34 to P36 per kilo. In another place I visited last week, rice is sold at P38 per kilo" he said in Filipino.
"There's a P34 per kilo where you have to buy 10 kilos get them for P34 per kilo. It means the public has options in availing of cheaper rice. There is greater rice supply. NFA also sells P27 per kilo and P32 per kilo," he added.
Republic Act No. 11203, signed by the President in February 2019, lifts import restrictions on rice and instead imposes a tariff system in a bid to boost the supply of rice in the country. The law paved the way for the influx of cheaper rice imports but caused local palay prices to drop, affecting farmers' income.
In 2019, the government collected P12.3 billion in rice tariffs payments. This year, at least P1.7 billion has been collected from rice imports.
Farmers’ benefits
Apart from providing affordable rice in the market, Agriculture Secretary William Dar said the the rice tariffication law has benefited local farmers in terms of improved production.
The law has created the Rice Competitiveness Enhancement Fund (RCEF) to help farmers enhance their productivity and competitiveness through seed, mechanization, credit, and extension services, according to Dar.
However, the agriculture chief denied that the farmers' losses have reached P68 billion after the implementation of the law. "They didn't lose P68 billion," he said.
As of February, Dar pointed out that the government has distributed P1.4 billion to 279,666 farmers or 46.82 percent of the targeted 597,404 beneficiaries from 33 provinces.
He said they have also disbursed P2.34 billion to assist farmers under the Expanded Survival and Recovery Assistance Loan Assistance for Rice Farmers Program (SURE-Aid program).
On seeds, he said they distributed 1,250,468 bags of certified seeds to 709 municipalities, covering 491,756 beneficiaries. At least 41 technology firms prepared demonstration sites for the 2020 dry season to showcase best practices in rice production.
On mechanization, he said they have validated 944 farmer cooperatives and associations and their corresponding technology requirement under the 2019 fund.
On extension, he said the DA-Agriculture Training Institute has extended capacity enhancement services in 295 farm schools, trained seven batches of trainers, and trained 16 batches of farmers.
The Land Bank has released a total loan of P459.63 million to 2,469 farmers and 19 cooperatives as beneficiaries. The Development Bank of the Philippines approved the loan application of Nagkakaisang Magsasakang Isabela Agricultural Cooperative amounting to P500 million.
Dar said they are committed to further strengthening the implementation of the RCEF program. They said they aim to increase farm productivity through the distribution of quality seeds and establishment of small-scale irrigation systems, community farm clinics, and a service center.
He said they are also working to revise and finalize the Philippine Rice Industry Roadmap, hasten crop diversification plan and farm clustering, and complete the streamlining of the NFA, among other strategies.
Trade and Industry Secretary Ramon Lopez (ALFRED FRIAS/PRESIDENTIAL PHOTO / MANILA BULLETIN)
Trade Secretary Ramon Lopez said prices of National Food Authority (NFA) rice have fallen to as low as P27 per kilo while commercial varieties have dropped to around P34 from a high of P50 last year.
The drop in rice prices and farmers' enhanced productivity are among the reforms resulting from the rice tariffication law signed by President Duterte last year, according to Lopez.
"I also call it ‘game changing’ because while we are able to allow freer importation of rice to ensure an abundant supply of rice, we can keep prices low and with that we were able to see huge benefit for consumers," he said in a Palace press briefing.
"But more than that, this is a law that also benefits iyong (the) farmers. Because as mentioned, the revenues coming from the tariff payments are being converted directly for farmers.”
Lopez said they have observed a "rice deflation" or a drop in prices of the staple in recent months. The rate dropped to negative 6.5 percent in January.
"We continue to monitor the rice section of groceries and markets. Last week, we saw the range in the Mega-Q Mart, former Nepa-Q mart, rice is sold between P34 to P36 per kilo. In another place I visited last week, rice is sold at P38 per kilo" he said in Filipino.
"There's a P34 per kilo where you have to buy 10 kilos get them for P34 per kilo. It means the public has options in availing of cheaper rice. There is greater rice supply. NFA also sells P27 per kilo and P32 per kilo," he added.
Republic Act No. 11203, signed by the President in February 2019, lifts import restrictions on rice and instead imposes a tariff system in a bid to boost the supply of rice in the country. The law paved the way for the influx of cheaper rice imports but caused local palay prices to drop, affecting farmers' income.
In 2019, the government collected P12.3 billion in rice tariffs payments. This year, at least P1.7 billion has been collected from rice imports.
Farmers’ benefits
Apart from providing affordable rice in the market, Agriculture Secretary William Dar said the the rice tariffication law has benefited local farmers in terms of improved production.
The law has created the Rice Competitiveness Enhancement Fund (RCEF) to help farmers enhance their productivity and competitiveness through seed, mechanization, credit, and extension services, according to Dar.
However, the agriculture chief denied that the farmers' losses have reached P68 billion after the implementation of the law. "They didn't lose P68 billion," he said.
As of February, Dar pointed out that the government has distributed P1.4 billion to 279,666 farmers or 46.82 percent of the targeted 597,404 beneficiaries from 33 provinces.
He said they have also disbursed P2.34 billion to assist farmers under the Expanded Survival and Recovery Assistance Loan Assistance for Rice Farmers Program (SURE-Aid program).
On seeds, he said they distributed 1,250,468 bags of certified seeds to 709 municipalities, covering 491,756 beneficiaries. At least 41 technology firms prepared demonstration sites for the 2020 dry season to showcase best practices in rice production.
On mechanization, he said they have validated 944 farmer cooperatives and associations and their corresponding technology requirement under the 2019 fund.
On extension, he said the DA-Agriculture Training Institute has extended capacity enhancement services in 295 farm schools, trained seven batches of trainers, and trained 16 batches of farmers.
The Land Bank has released a total loan of P459.63 million to 2,469 farmers and 19 cooperatives as beneficiaries. The Development Bank of the Philippines approved the loan application of Nagkakaisang Magsasakang Isabela Agricultural Cooperative amounting to P500 million.
Dar said they are committed to further strengthening the implementation of the RCEF program. They said they aim to increase farm productivity through the distribution of quality seeds and establishment of small-scale irrigation systems, community farm clinics, and a service center.
He said they are also working to revise and finalize the Philippine Rice Industry Roadmap, hasten crop diversification plan and farm clustering, and complete the streamlining of the NFA, among other strategies.