NEWS | Philippines remains as top rice importer, farmers call to redesign RTL
By: The News Team
According to the United States Department of Agriculture (USDA), the Philippines will remain as the top importer of rice until 2021. Despite limited global supply of rice, Philippines’ imports are expected to reach three million metric tons (MT).
Trinidad Domingo, representative of the Pambansang Katipunan ng mga Samahan sa Kanayunan (PKSK), said that the flat performance of local palay is attributed to the impact of the Rice Tariffication Law (RTL). In 2021 the country’s milled rice production is projected to decrease to 11 million MT, from 11.9 million MT expected at the end of this year.
Several agricultural groups pointed out the flaws of the RTL. They reiterated that a more nuanced and strategic approach to rice trade liberalization needs to be put in place.
RCEF failed to lower costs
RTL, which was enacted last year, allowed the unimpeded entry of cheaper imported rice into the country starting March 2019. One of its major components is the Rice Competitiveness Enhancement Fund (RCEF) which is the tariff collected from rice imports. It is supposed to lower the production cost of Filipino rice farmers by providing free seeds and mechanization.
However, the country’s rice output for the first half of the year only reached 8.39 million MT. This is significantly lower compared to the 8.57 million MT and 8.71 million MT produced in 2017 and 2018 without the support of the RCEF.
An in-depth analysis of RTL’s first implementation year also revealed that farmers suffered losses amounting to P80 billion from lowered farm gate prices amidst the influx of imported rice.
Aside from the RCEF, the Department of Agriculture’s (DA) Rice Resiliency Program, which aims to give substantial support to local farmers, received backlash. According to the Federation of Free Farmers (FFF), there were reports of delayed deliveries and provision of substandard seeds with low germination rates.
Call to redesign RTL
Raul Montemayor, national manager of FFF, said that the COVID-19 pandemic revealed the weaknesses of the RTL and that it necessitated changes. He specified that reforms should include a more proactive use of trade remedies under the World Trade Organization (WTO) and local laws and the strengthening of farmers’ participation in rice programs. He added that there should also be stricter oversight on rice industry players which will prevent undervaluation of imports and make the RCEF more responsive to farmers’ needs.
Likewise, the group Nagkakaisang Boses Laban sa RTL said that Duterte’s approach to agriculture does not hold much promise for Filipino farmers. They lamented the country’s weak agriculture and food system exposed during the pandemic. With this, the group insisted that the government should use this opportunity to give the agriculture sector the support it needed.
“Clearly, the RTL needs to be re-thought and redesigned, immediately, if we are to save our rice farmers and strengthen our food security situation,” the group concluded.
