Rice tariff impact to hinge on promised aid to farmers — Agri dep’t

THE effects of the rice tariffication law will be felt by the industry over the next three or four years, provided that the tariffs collected are properly channeled to rice farmers, Agriculture Secretary Emmanuel F. Piñol said.

Mr. Piñol told reporters on Thursday that he backed Albay first district Representative Edcel C. Lagman’s position that “there should be an unequivocal and clear statement in the proposed law that automatically places the tariff collected from the imported rice into the RCEF (Rice Competitiveness Enhancement Fund).”

“That would assure that the rice industry would be able to stand up to what is expected to be an inundation of imported rice,” Mr. Piñol said.

The bill contains a provision that the tariffs from the imported rice be pooled under the RCEF, for distribution to rice farmers to improve crop production.

The Department of Agriculture (DA) has calculated that the tariffs may generate around $400 million a year, based on the assumption of imports of 2 million metric tons (MT) at a 40% tariff rate.

“If that happens and everything is given to the rice industry, then we can give the rice seed to the farmers and their production can increase and we can subsidize farm machinery and equipment,” Mr. Piñol said.

Such an improvement in productivity will facilitate President Rodrigo R. Duterte’s target, laid out in his State of the Nation Address last month, to bring down the price of rice by P7 per kilogram.

Mr. Piñol said the price reduction is not straightforward.

“The effect of what the president said will be felt after all the support to the rice industry is delivered,” he added.

“That is when the farmers will be able to produce more. The cost of production will be cut to at least a third of what it is now and that will make farmers more competitive.”

The government will also have to deal with smuggling and hoarding, as discussed in the DA’s budget hearing on Thursday.

Mr. Piñol during the hearing said that he ordered the National Food Authority to install closedcircuit television systems in its warehouses and reiterated his plan to include private traders in the 60-day buffer stocking.

Another issue Mr. Piñol pointed out is the need to “really review the inventory of rice traders in their warehouses.”

“In our ( government) point of view, those rice traders who hide stocks in their warehouses while waiting for a good price are guilty of economic sabotage,” he added.

“From the traders’ point of view, it’s inventory management.” —