Review sought for Rice Tariffication Law

A review of the Rice Tariffication Law to determine if it had complied with its commitment to keep prices of rice at affordable levels and help rice farmers through various initiatives is needed.

Comebacking Rep. Teodoro Baguilat Jr. (Ifugao) said the RTL was supposed to prop up the country’s rice sector through collection of tariffs from imports.

The RTL, passed in 2019,  was envisioned to bankroll initiatives to improve productivity, modernize the farming sector (through mechanization and other technologies) and ensure an affordable price of the staple for all consumers (farmers included).

It also limited the role of the National Food Authority to merely buffer stocking for emergencies, which the Department of Agriculture now wants changed to an active market force through legislation it is pushing with Congress.

The DA wants the NFA to be a market influence by reverting to its old mandate so that it can buy more palay from farmers and sell more in the market so that prices would not be manipulated by private traders.

“We want to see how the RTL had played out in all these, especially that we continue to buy rice at high prices,”said Bguilat in a speech in Cagayan de Oro,  

He hinted at a “dysfunction somewhere, and that is what we would like to uncover and remedy if given a chance to be back in Congress.

He is pushing for a consistent priority allocation of resources for education, health, and conditional cash grants for poor families.

The RTL (Republic Act 11203), which expired last year, was amended by RA 12078, extending the Rice Competitiveness Enhancement Fund up to 2031 and increased its annual allocation for RCEF to P30 billion from P10 billion to bolster support for initiatives like high quality seed production, farm mechanization, training and extension, improved soil health, pest and disease management and water management.

DA Secretary Francisco Tiu Laurel Jr. thanked Congress for the new law, calling it an investment not only in agriculture but in the nation’s economic future.

“The increased funding to enhance the rice industry’s competitiveness will boost both rice yields and farm output, benefiting millions of farmers and their families, as well as millions of poor Filipino consumers who need more affordable rice,” Laurel said.

Under the new law, P30 billion will be allocated annually for RCEF, of which P6 billion will be for high-quality rice seeds; P9 billion for farm mechanization, and P15 billion for extension and training programs, rice farmers financial assistance, credit, soil improvement, solar-powered irrigation systems, and water impounding projects.

The Rice Fund aims to increase the production and distribution of certified inbred rice seeds. Starting 2027, the Philippine Rice Research Institute (PhilRice) is expected to be capable of distributing around 5.5 million bags of rice seeds annually, a 76 percent increase from current levels. 

This expansion will cover 2.54 million hectares and is expected to increase average yields by up to 21 percent in both dry and wet seasons, potentially feeding more than half of the population at a per capita consumption rate of 120 kilos.

The mechanization program, managed by the Philippine Center for Postharvest Development and Mechanization (PhilMech), will provide free agricultural machinery to all rice-producing provinces. The initiative aims to reduce postharvest losses to as much as 8 percent from the current 5 percent, resulting in savings that are enough to feed about 3.4 million for a year. 

Once fully implemented, mechanization will cover 1.73 million hectares, improving productivity, lowering farming costs, and enhancing efficiency.

The new law also strengthens the DA’s regulatory functions through the creation and maintenance of a database for all grain warehouses and storage facilities allowing comprehensive monitoring of the country’s rice reserves.

It also allows the National Food Authority (NFA) to sell rice buffer stocks to government agencies and the public, through KADIWA ng Pangulo centers, in areas experiencing rice supply shortages or extraordinary price increases. It also permits the replenishment of NFA rice buffer stocks with either locally- produced or imported rice in case of insufficient supply of locally produced rice.

The President is also empowered under the new RTL to authorize rice imports at a lower tariff rate for a limited period and/or specific volume. 

In cases of extraordinary drops in local rice prices, the President may suspend rice imports for a limited time and/or volume until rice supply and prices stabilize.