TWO senatorial candidates of the administration’s “Alyansa para sa Bagong Pilipinas” yesterday vowed to push for a comprehensive review of the Rice Tariffication Law (RTL), if elected, to help further bring down the prices of the staple.
Former senator Manny Pacquiao and former Interior secretary Benhur Abalos agreed that there is a pressing need to revisit the law to protect local farmers from imported rice.
Pacquiao said the House of Representatives and the Senate have to address what he called the “imbalances” created by the liberalized importation of rice under the RTL.
“Rice is life for the Filipino people. We must act now to bring down rice prices and protect the livelihood of our farmers,” Pacquiao said. “If we want a truly strong and secure Philippines, we must empower those who feed our nation,” he said in a statement.
He said that while the intent of the RTL to stabilize rice supply was good, “its implementation needs serious review to ensure it does not leave local farmers at a disadvantage.”
“Hindi pwedeng laging dehado ang ating mga magsasaka (It can’t be that our farmers are always at the losing end). We need a rice policy that prioritizes Filipino farmers first, while ensuring that consumers can buy affordable, quality rice. Pagkain ‘yan, hindi luho (That’s food, not luxury),” he said.
In February 2019, Congress passed the RTL that removed the ban on the importation of rice from other countries, effectively lifting the exclusive authority given to the National Food Authority and allowing private traders to import rice, provided that they pay the corresponding tariffs or taxes to the government.
Any amount of rice from countries belonging to the Association of Southeast Asian Nations can be imported at 35 percent tariff and at about 50 percent tariff for rice from non-ASEAN countries.
Pacquiao said he would push for amendments to the RTL “to include stronger government intervention mechanisms, direct support for farmers, and a review of tariff revenues utilization.”
He is also proposing a comprehensive “Production-Distribution-Consumption” (PDC) initiative to lower rice prices, increase farmers’ incomes, and ensure food security.
Under the initiative, Pacquiao wants an increased government investment in rice production through subsidies, irrigation, and access to modern technology; reform of distribution systems by cutting out middlemen and establishing more direct farm-to-market routes; and consumer protection via price monitoring and bolstered NFA buffer stocks to stabilize prices during supply shocks.
“Food security is national security. If we want true progress, we cannot leave our farmers behind. A strong agriculture sector is the foundation of a strong Philippines,” he said.
For his part, Abalos said he wants to restore the NFA’s critical role in the country’s rice supply system.
He said the weakening of the NFA under the current law “has left farmers vulnerable to price fluctuations and consumers exposed to higher costs and lower quality rice.”
“Before, the NFA was allowed to directly sell rice to the public to keep supply and prices stable,” he said. “But since the Rice Tariffication Law was passed, the NFA’s role has been reduced to mere buffer stocking for calamities and emergencies. It no longer has the power to intervene in prices or regulate the market like it used to.”
Abalos said that while the law succeeded in opening the market, “it sharply curtailed the NFA’s ability to protect farmers and consumers.” “Dati, ang NFA ang nagbabantay para hindi malugi ang magsasaka at hindi rin maperwisyo ang mamamayan (The NFA used to make sure that farmers are not at the losing end so that the public won’t suffer, too),” he said.
“Pero tinanggalan natin sila ng armas. Kailangang ibalik natin sa NFA ang kakayahang mamagitan—bumili ng palay, magbenta ng abot-kayang bigas, at magtulay sa pangangailangan ng bawat Pilipino (But we disarmed them. We to restore the NFA’s power to be a go-between—buy unhusked rice, sell affordable rice and serve as a bridge for the needs of every Filipino),” he also said.
Abalos noted data from the Philippine Statistics Authority (PSA) showing that the average farmgate price of palay has remained low at P17 to P18 per kilogram, while retail prices of rice have surged past P50 per kilogram in many areas.
“Because of restrictions under the Rice Tariffication Law, the NFA could no longer promptly sell its stockpile to manage inventory, especially before harvest season,” he said.