Rice tarrification law to help farmers, poor — NEDA chief

By: John Eric Mendoza

Rice tariffication will directly benefit both farmers and the poor through lower price of the food staple and increased government assistance to the rice sector, the National Economic and Development Authority officials said on a media briefing last February 26.

The recently enacted law will lift import restrictions on the staple, but imported rice, mainly from ASEAN nations like Vietnam and Thailand, will be slapped with a 35% tariff, in accordance with  the ASEAN Trade in Goods Agreement. Imports from non-ASEAN countries would be slapped with 50% tariff, pursuant to the World Trade Organization agreement on agriculture upon the expiration of the waiver regarding with the special treatment for rice of the Philippines, whichever is higher.

Socioeconomic Planning Secretary Ernesto M. Pernia further claims that the annual income of PHP 10 billion from the newly-signed Rice Tariffication Law would provide for the establishment of the Rice Competitiveness Enhancement Fund (RCEF) that would provide assistance to farmer for the next six years.

The RECF is allocated for the procurement of agricultural implements for rice farmers, rice development, propagation and promotion, as well as expanded rice credit and extension services.

Rice Tariffication would also have an effect on lowering inflation up to 0.5%, claims Assistant Secretary Merecedita Sombilla. Asec Sombilla also sees the Rice Tarrification as a way to make farmers more innovative by encouraging them to plant higher quality variants of rice with higher yields, which they could sell at a higher price, while buying cheaper rice on the market.

 “We would like those in the agriculture sector to have better income and employment opportunities, and provide a matatag, maginhawa, at panatag na buhay for everyone – a life free from hunger,” said Pernia.