Neda: Rice tariffication to solve rice issue
MANILA-- The National Economic and Development Authority (Neda) highlights the need to immediately pass the rice tariffication bill in Congress, a significant step in reforming the agricultural sector.
The passage of the bill, which amends Republic Act (RA) No. 8178, otherwise known as the Agricultural Tariffication Act of 1996, will pave the way for the replacement of the quantitative restrictions (QR) on rice imports with tariff. This will remove unnecessary government intervention in the rice market, as envisioned by the President during the meeting with rice traders, officials of the National Food Authority (NFA) and members of the NFA Council.
The members of the NFA Council, which include the Neda, also took note of the instruction of the President to expedite the processing of the necessary papers and clearances. The Council is responsible for setting the terms of reference including the volume to be imported for the year, the timing of import arrivals and the mode of importation, while the permit to import by a specific trader or importer is being processed by the NFA.
“The Council considers the projected domestic production vis-à-vis domestic demand within the context of the global trading scenario, domestic inflation, fiscal position and its impact on the income of farmers," said Neda Officer-in-Charge Rosemarie Edillon.
“The role of the Council can be taken on by the full Cabinet, supported by complete staff work from the respective agencies. Whatever the governing body, Neda stands ready to provide the technical inputs needed,” Edillon said.
Once the quantitative restriction is replaced by predictable tariffs, Neda expects th at the private sector can respond more effectively to market signals and government can focus on regulating to ensure food safety.
“The revenues from the tariff collection can be plowed back to improve the competitiveness of the sector and improve farmers’ incomes,” Edillon added.