Pernia: Pass tariffication bill to reduce rice prices

The rice tariffication bill must be passed as soon as possible to bring down the rising prices of the Filipino staple food and ease inflation, economic planning chief Ernesto Pernia said.

Pernia reiterated his call to replace the quantitative restrictions (QR) on rice imports with tariff amid the continued rising inflation.

He recently said in Cebu City that if the bill, which amends Republic Act 8178 otherwise known as the Agricultural Tariffication Act of 1996, is passed, consumers must eventually see a decrease in rice prices by as much as P7 per kilo.

Part of the reform, Pernia said, should be to take away the monopoly of rice importation from the National Food Authority and instead task the agency only for buffer stocking in cases of supply shortage.

"Let the private sector do the importation," he said.

In his third State of the Nation Address (SONA) on Monday, President Duterte asked Congress to prioritize this crucial reform which he certified as urgent.

"We are also working on long-term solutions. On top of this agenda to lower the price of rice. We need to switch from the current quota system in importing rice to a tariff system where rice can be imported more freely. This will give us additional resources for our farmers, reduce the price of rice by up to 7 pesos per kilo, and lower inflation significantly," Duterte noted.

"To help stabilize rice prices, we also need to address the issue of artificial rice shortage. I now ask all the rice hoarders, cartels and their protectors, you know that I know who you are: stop messing with the people," he further said.

"I am directing all intelligence agencies to unmask the perpetrators of this economic sabotage and our law enforcement agencies to bring them to justice," he said.

The rice tariffication bill is deemed a significant step in reforming the agricultural sector.

The measure 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.

Once the quantitative restriction is replaced by predictable tariffs, the National Economic and Development Authority expects that the private sector can respond more effectively to market signals and government can focus on regulating to ensure food safety and fair market competition.

The revenues from the tariff collection can be plowed back to improve the competitiveness of the sector and improve farmers’ incomes, NEDA said.