PRESIDENT Marcos Jr. yesterday rejected a proposal to temporarily reduce rice tariffs to address the high prices of the staple grain.
The President said tariffs are usually reduced when prices continue to go up, but it has been projected that prices of rice will drop in the world market soon.
“We decided with the agriculture and economic managers that… it was not the right time to lower the tariff rates because the projection of world rice prices is that it will go down. So, this is not the right time to lower tariffs. Tariffs are generally lowered when the price is going up,” Marcos said following a sectoral meeting in Malacañang yesterday.
The National Economic and Development Authority (NEDA) has earlier said that a reduction in the tariff imposed on imported rice is one of the options that the administration can consider to bring down local rice prices.
During Tuesday’s meeting, the NEDA presented updates on the proposed rice tariff reduction with inputs from the Department of Finance (DOF), Department of Trade and Industry (DTI) and the Department of Budget and Management (DBM).
NEDA Secretary Arsenio Balisacan and Agriculture officials, namely Undersecretaries Leocadio Sebastian and Mercedita Sombilla said now was not the right time to lower tariff rates because of the downtrend in rice prices in the world market.
Asked if the government will soon lift the implementation of Executive Order 39, which imposed a price ceiling of P41 per kilo for regular milled rice and P45 per kilo for well-milled rice, the President said it will remain in effect as they still have to study the matter carefully.
“Pag-aralan natin mabuti (we will study it thoroughly),” Marcos said.
‘BUKBOK’
Earlier on Tuesday during the distribution of government confiscated smuggled rice to Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries in Manila, the President said that while the government’s campaign against agriculture saboteurs is challenging and difficult, his administration is determined to put an end to the illegal activities of smugglers, hoarders, and price manipulators whom he compared to “bukbok” or rice bugs which disrupt the supply and price of rice in the country.
He said that while the campaign against smugglers, hoarders, and price manipulators has been difficult since they have been operating illegally for years already, his administration is determined and will relentlessly run after them not just to end their illicit activities but also to ensure access to affordable staple food for all Filipinos.
“Kaya inaatasan ko ang lahat ng mga opisyal, otoridad, at mga ahensya na higpitan nang husto ang pagpapatupad ng mga polisiya at batas hinggil sa isyu ng bigas (That’s why I ordered all officials, authorities and agencies to strictly implement policies and laws related to rice),” he said.
He said there is no place for smugglers, hoarders, and price manipulators in his government.
“Ang bukbok na lubos na sumisira sa balanse ng suplay at presyo ng bigas sa merkado [ay] ang hoarding atsaka ang smuggling at price manipulation na ginagawa ng mapagsamantalang mga negosyante.
Sa Bagong Pilipinas, hindi na po ito puwede (The weevils or rice bugs that destroy the balance of supply and price of rice in the market is hoarding and smuggling and the price manipulation done by unscrupulous traders. This is not allowed in the new Philippines),” he said.
The President also asked the public to support and join the government in its campaign to strengthen the agriculture sector and realize a new Philippines where Filipinos live a stable, comfortable, and secure life.
“Sa ating pagkakaisa, tiyak na anumang hamon ay kakayanin at anumang pangarap ay matutupad, basta’t para sa sambayanang Pilipino at para sa Pilipino (In being united, we can overcome any challenges and realize our dreams, as long as it’s for the Filipino people),” he said.
The President also reiterated that there is enough rice supply in the country, especially with the harvest season coming, and the government just needs to ensure the sound management of production and trade.
Marcos on Tuesday led the distribution of 25-kilos sacks of rice each to 1,000 4Ps beneficiaries at the San Andres Sports Complex in Malate, Manila.
The rice is part of the 42,180 sacks of rice seized by the Bureau of Customs (BOC) in an operation in Zamboanga City. The confiscated sacks of imported rice have been donated to the Department of Social Welfare and Development (DSWD) after the importers failed to prove the legality of their importation.
The President again assured that due process was observed before the confiscation and distribution of the rice.
Parts of the seized grain had already been distributed last week to 4Ps beneficiaries in Tungawan, Zamboanga Sibugay; Iriga City, Camarines Sur; and General Trias, Cavite.
ANTI-AGRICULTURAL SMUGGLING ACT
The House of Representatives on Tuesday approved on second reading the Palace-backed bill seeking to strengthen the Anti-Agricultural Smuggling Act of 2016 by imposing life imprisonment to those who will be found guilty of committing economic sabotage.
Through voice voting, lawmakers approved House Bill No. 9284, which classifies smuggling of rice and other agricultural products such as onion as “economic sabotage” following the sudden increases in prices recently.
The President has already certified as urgent a counterpart bill in the Senate.
Speaker Martin Romualdez said the bill, once enacted, is meant to act as a “permanent deterrent” to hoarders and price manipulators of basic commodities by imposing life sentence as maximum penalty for offenders.
“This is because we want to send a chilling effect on these cartels that have been operating for decades now. We really mean business this time. And our primary task here is to protect the welfare of the masses — provide them with the most affordable goods in the market,” he said. “President Marcos – as Chief Executive and secretary of agriculture — fully appreciates the adverse impact of the smuggling of rice and other staples on farmers, fisherfolk and on consumers. We share his concern for the affected sectors,” he also said.
The House approved the measure after a series of hearings by the Committee on Agriculture and Food chaired by Quezon Rep. Wilfrido Mark Enverga, who has endorsed the measure for plenary approval.
The bill, which is part of the 20 bills listed as priorities by the Legislative-Executive Development Advisory Council (LEDAC) for passage this December, will be approved on third and final reading before Congress goes on recess on September 30.
Romualdez said once the measure becomes a law, would also benefit the public by ensuring stable prices as it would discourage hoarding and price manipulation.
He said the measure would protect farmers and fishermen from smugglers, especially in times when prices are manipulated and agricultural products are hoarded.
“We have to shield them from these atrocious activities to encourage them to produce more rice and other staples so the country can attain food sufficiency,” Romualdez said.
NFA ANNIVERSARY
During the 51st anniversary of the National Food Authority (NFA) yesterday, the President highlighted some of the ongoing programs of the agency as he committed his administration’s continued support, along with efforts that would promote food security, ensure public access to affordable food, boost the agricultural sector in the Philippines, and increase the local production and supply of the staple food in the country.
Marcos, in his speech read by Agriculture Senior Undersecretary Domingo Panganiban, said the recent months have been challenging, but the NFA continues to find the best solutions to the numerous issues it has faced without compromising the needs of farmers and retailers.
“We continue to relentlessly strive to bolster the agriculture sector to increase our local food production and supply. We also conducted outreach activities and extended food relief assistance to the underprivileged members of our society. We have likewise undertaken measures to support our retailers in light of the price cap that we imposed to stabilize rice prices in the market,” he said.
He said the government is also undertaking aggressive steps to ensure price stability of basic commodities, especially rice, by strengthening law-enforcement activities against smugglers, hoarders, and those who undermine government efforts to ensure food security.
The President also expressed high hopes in the success of the Smarter Approaches to Reinvigorate Agriculture (SARAI) which seeks to intensify ongoing efforts to provide smart and sustainable solutions for a more productive and proactive farming.
Project SARAI aims to develop a national crop forecasting and monitoring system for nine priority crops, which are rice, corn, banana, coconut, coffee, cacao, sugarcane, tomato, and soybean. It will also serve as a source for the measurable, verifiable, and connected gathering of procurement data to improve NFA warehouse management and accounting.
Marcos also expressed optimism about the results of the NFA Modernization Program and its signing of a credit line with the Landbank and the Development Bank of the Philippines.
Under the NFA Modernization Program, the agency plans to build facilities and pursue developments, including post-harvest storage and processing facilities towards a 100-day buffer stock target, rice fortification, and non-grains supply chain support facilities. The NFA also intends to transition to renewable energy sources, such as biomass and solar batteries, for enhanced power generation.
“May this 51st anniversary celebration reinvigorate the drive to continue fulfilling the NFA’s mandate of maintaining sufficient rice buffer stock sourced from our local farmers. Even in the midst of challenges that grapple our agriculture sector, you have remained steadfast in maintaining a buffer stock of rice and palay, especially during times of emergencies and calamities,” he said. — With Wendell Vigilia
