Farmers say tariff cut on rice imports not beneficial
Credit to Author: Jasper Emmanuel Arcalas| Date: Sat, 8 Jun 2024 00:00:00 +0800
MANILA, Philippines — Various farmers’ leaders met with Finance Secretary Ralph Recto Thursday afternoon and expressed their opposition to the tariff cut on imported rice.
“We registered our objections to the National Economic and Development Authority (NEDA)’s action, while Secretary Recto explained the reasons for it,” former agriculture secretary Leonardo Montemayor said.
“We emphasized that even with the lower tariff, it is not likely that rice will go down amid the increase in the prices in the world market and the depreciation of peso to the dollar. The two combined, it will offset any possible benefit of the tariff cut,” he added.
Montemayor said Recto vowed to increase the measures to help farmers improve their productivity and strengthen local production.
The NEDA board approved on June 3 the new Comprehensive Tariff Program for 2024-2028, which includes the reduction of rice tariff for in- and out-quota rates from 35 to 15 percent.
The President lowered rice tariffs until 2028 to bring down rice prices to P29 per kilo, Socioeconomic Planning Secretary Arsenio Balisacan said earlier.
Meanwhile, Montemayor criticized Senate President Francis Escudero for supporting the reduced tariff on imported rice without doing his research on the issue.
“When the issue on the tariff cut on rice was announced, he immediately made a statement to ride on the issue that he was in favor of the reduced tariff on rice. He readily accepted that the retail prices of rice will go down. Escudero should be more circumspect and thoroughly study the issue,” Montemayor said.
“He should first ask the farmers on its impact. It is true that the prices of rice will go down, instead of immediately joining the bandwagon of members of Congress praising the recent decision,” he added.
Sen. Imee Marcos has opposed the lowering of tariff on rice imports, describing it as a “ham-fisted” solution that would only benefit foreign exporters of the food staple.
“Apart from high rice prices in the global market, rice exporting countries know that we need to import rice and are taking advantage of it, neutralizing the intended effect of a lower tariff,” Marcos said.
She also scored NEDA for not conducting a consultation and for not doing a cost analysis on the lowering of rice tariffs.
“Lowering the rice tariff should only be an emergency measure, usually lasting six months to one year. Is NEDA projecting that the country will be in a rice emergency until 2028?” Marcos asked.
She stressed that importing rice is not the way to make the country self-sufficient in rice, as she proposed leasing uncultivated public land to farmers and expanding contract farming instead.
“We have no economies of scale. Farmers must consolidate to increase the country’s rice supply, stabilize prices and earn a decent income,” Marcos said.