The government should reclaim its authority to regulate rice importation and domestic trade and procure palay from farmers for P23-P25 per kilo through the National Food Authority (NFA) rather than lower the tariffs on imported rice, according to a non-government organization (NG0) that advocates food security.
In a statement, the Integrated Rural Development Foundation (IRDF) issued this statement as the group expressed alarm over the approval of the National Economic and Development Authority (NEDA) Board chaired by President Ferdinand R. Marcos Jr. last week of the tariff reduction on imported rice from 35 percent to 15 percent until 2028.
IRDF’s Executive Director Arze Glipo stated during a recent forum that further reduction on rice import tariffs will practically decimate the local rice industry as rice farmers have yet to recover from the massive income loss they incurred in 2019 when the Rice Tariff Liberalization law was implemented.
She added that the annual P10 billion tariff revenue earmarked for the Rice Competitiveness Enhancement Fund (RCEF) from the rice tariff revenue has failed to bail out farmers from bankruptcy as fertilizer and input costs have soared rapidly in the past four years while subsidies and cash assistance account only for about 10-20 percent of rising palay production costs.
To reclaim its authority to regulate rice importation, IRDF recommended that government procure palay from farmers through NFA, rice coops and local government units in order to collectively push domestic palay prices up to P23-25 per kilo. “This ensures fair compensation for farmers, sustaining their livelihoods and encouraging increased rice production and thereby ensuring stable domestic rice supply,” said IRD, whose advocacy is on rural development by promoting food security, food sovereignty, and social and environmental justice to enable the poor to have greater access to and control their resources.
“Reforming while empowering the NFA to play a proactive role in price stabilization, preventing market manipulation by private traders, and ensuring that rice prices remain within reach for all Filipinos is vital,” IRDF said.
Increased funding for rice farmers, at least P30 billion annually should be allocated to improve agricultural infrastructure, provide access to better farming technology, and offer training and resources to farmers.
According to agriculture consultant former professor of the UPLB, Dr. Ted Mendoza, the Philippines is projected to import 4.1 million metric tons (MMT) of rice this year, surpassing last year’s import of 3.9 MMT. This trend highlights the country's increasing reliance on rice imports, raising concerns about food security and self-sufficiency.
To enhance data accuracy and transparency, Dr. Mendoza suggests that it is necessary to reassess and re-calculate rice demand. Adopting a realistic per capita consumption rate (e.g., 119 kg instead of the inflated 151.3 kg) will provide a more accurate picture of national needs. Ensuring transparency in rice trading and importation processes and addressing issues such as corruption and market manipulation are essential for fostering a more equitable and efficient agricultural sector.
Despite the ongoing El Niño phenomenon, the Department of Agriculture also claimed that rice production remains robust. However, discrepancies in data used to calculate rice demand and supply have led to overestimated import requirements.
Mendoza also recommends several measures to support sustainable agricultural practices and local farmer empowerment. He states that strengthening the role of the NFA in maintaining adequate buffer stocks, aiming for a 60-day buffer stock, is crucial to ensure food security and price stability. Promoting sustainable farming practices, encouraging the adoption of biodiverse, integrated, and organic-sustainable agriculture, and supporting small-scale and family-owned farms are essential steps towards achieving sustainability. Diversifying food sources by promoting other carbohydrate-rich crops like corn and sweet potatoes can help reduce reliance on rice and achieve food self-sufficiency.
Meantime, Dr. Rene Ofreneo, former UP Dean and President of the Freedom from Debt Coalition (FDC) explained that arresting inflation with the reduction of rice import tariffs maybe counterproductive as “historical experience shows that agricultural import liberalization does not automatically lead to the lowering of prices of food items.
Ofreneo added that lowered tariffs benefit only the importers and traders “by keeping the prices of these items at high level and by driving downward the gate prices for domestic harvests.”
Persistent high food inflation and declining domestic food production will push the government to increase domestic and foreign borrowings in order to provide "ayuda" to the poor consumers and poor farmers, he concluded.