Repeal Rice Tariffication Law

The major headlines are focused on the impeachment T of Vice President Sara Duterte and the scandals caused by corruption in the implementation of the flood control projects.

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All of these have overshadowed a major economic issue that is threatening the livelihood of millions of farmers. This is the Rice Tariffication Law (RTL).

This law was enacted in February 2019 and was supposed to be a major agricultural reform in the Philippines. The law replaced the decades-old system of quantitative restrictions on rice importation with a tariff-based system. The RTL aimed to liberalize the rice market, stabilize rice prices and make rice affordable to Filipino consumers.

The RTL therefore removed the longstanding import quotas on rice and allowed private traders to import rice from other countries subject only to the payment of tariffs.

A35 percent tariff is imposed on rice imports from ASEAN member-states and 50 percent or more from non-ASEAN countries. The revenues generated from these tariffs are earmarked for the Rice Competitiveness Enhancement Fund (RCEF), which is intended to help local farmers cope with increased competition from imported rice.

The RCEF was supposed to support mechanization, seed development, credit assistance and farmer training.

When the imported rice entered the market at lower prices, farmgate prices dropped sharply. In some provinces, prices went as low as P12-14 per kilo, far below the average production cost of P15-17 per kilo. This left many farmers operating at a loss, pushing many to stop planting rice completely.

Since the passage of the RTL, there have been strong opposition from farmers' groups, agriculture advocates and local government units in rice-producing regions.