RICE industry stakeholders in the Visayas want an assurance from the government that it will help the local farmers in case prices of the commodity slumps, amid apprehensions on the possible adverse effects of rice tariffication.
Provincial Agriculturist Japhet Masculino, who attended the consultation on rice tariffication for Visayas region in Iloilo City on Friday, March 1, said participants are concerned of the possible drop in the prices of palay due to the entry of cheaper imported rice.
They asked Agriculture Secretary Emmanuel Piñol, who was also present at the consultation, about the concrete interventions of the government if worst case scenario arises, Masculino said.
“Stakeholders want to include in the implementing rules and regulations being finalized by the National Economic and Development Authority the measures and assistance to be given by the government in case local rice industry will be affected by the rice tariffication measure,” he added.
On February 15, President Rodrigo Duterte has signed into law the measure lifting restrictions on rice importation.
Duterte certified the rice tariffication bill as urgent in October 2018 in a bid “to address the urgent need to improve availability of rice in the country, to prevent artificial rice shortage, reduce the prices of rice in the market, and curtail the prevalence of corruption and cartel domination in the rice industry.”
Under the rice tariffication scheme, quantitative restrictions on rice importation are lifted and private traders are allowed to import the commodity from countries of their choice.
It imposes a 25-percent duty on rice imports from the Association of Southeast Asian Nations member-states and a 50 percent rate on imports from non-members of the regional bloc.
It can be recalled that the country’s economic team has been pushing for rice tariffication, saying this should bring down the prices of the country’s staple and weaken inflation.
The Department of Agriculture has been doing rounds of consultations nationwide to make stakeholders understand the details of the rice tariffication and liberalization law.
During the consultation in Iloilo City, Masculino said the agriculture chief vowed that the agency will support local farmers.
Piñol, he said, is pushing for the lowering of interest rate in availing the Rice Comprehensive Enhancement Fund (RCEF).
There’s a component that the farmers have to pay 10 percent interest to the Land Bank of the Philippines and Development Bank of the Philippines, Masculino said.
“According to Piñol, it is too high. The interest rate for Production Loan Easy Access Program is only six percent,” he said, adding that the secretary echoed “we fought that RCEF is intended as grant for farmers in order to prepare them for the challenges brought by rice tariffication."
He (Piñol) also assured Visayas stakeholders that there will be no corruption in the utilization of P10 billion fund for RCEF.
“We hope that all these concerns along with other issues raised during the consultation will be considered by the government,” Masculino said.
Moreover, at the sidelines of the consultation, the provincial agriculturist has made clarifications with representatives of the Philippine Center for Postharvest Development and Mechanization and Philippine Rice Research Institute that mechanization and seed distribution should be in the form of grant not as loan.
“They validated, they agreed to it,” he said, adding that there’s a need to strengthen the local seed growers.
The Provincial Government of Negros Occidental, through the Office of the Provincial Agriculturist, earlier said it is bracing for the possible effects of the newly-signed rice tariffication law among farmers in the province.
Masculino said if the government can seriously implement mechanization by providing funds for purchase of machineries, it would be a big help because labor comprises more than 50 percent of the total production cost.
“Our mechanization accomplishment, especially in the planting and harvesting stages, is still minimal,” he said, adding that “if we can just fully mechanized at least our irrigated areas of 40 hectares, it would already be a big thing.”
It can be recalled that the province already funded P25 million for farm mechanization last year.
The provincial agriculturist, however, said the amount is too small for about 100,000 rice farmers in Negros Occidental with about 65,000 hectares farms. (EPN)