Andaya: Gov’t must help farmers before rice 35% tariff is imposed

government must position programs to help farmers before the proposed 35-percent tariff on imported rice is in place, House Majority Leader Rolando Andaya Jr. said on Friday.

President Rodrigo Duterte has urged Congress to pass the rice tariffication bill, amending Republic Act No. 8178 or the Agricultural Tariffication Act of 1996, which seeks to stabilize rice prices and address an artificial rice shortage.

It has been estimated that a 35-percent tariff on imported rice would raise revenues that can be used to support the agriculture sector, contrary to the position that local farmers can only benefit from rice self-sufficiency.

The rice tariffication bill passed on second reading at the House of Representatives earlier this week.

The tariff on imported rice could trim inflation by 0.8 percentage points, the Bangko Sentral ng Pilipinas said Thursday. Andaya emphasized on Friday that “safety nets” are not put in place when the person it is supposed to catch is already falling.

“The idea is hindi na hihintayin ‘yung katas ng 35 percent duties na babayaran ng mga inimport na bigas para tulungan sila, para i-plow back sa rice sector,” Andaya said in a statement.

“For signaling purposes ito sa mga rice farmers, to calm their fears, na kung papasok tayo sa tariffication regime, nakahanda na ang mga program that will help you transition,” he also said.

‘PROJECTS’

“There is one school of thought that the projects to help farmers be advanced instead of waiting for them to be funded by income from the duties on rice to be imported. There is merit on that proposal,” the lawmaker noted.

He cited a statement by the Department of Agriculture that its budget next year was reduced.

“More so, in the light of the DA statement that its budget for next year was reduced from P61 billion to P55 billion. Ganun din sa mga agriculture agencies, like NIA and PCA, which are not directly under DA. ‘Yung NIA, ang subsidy is down by P5 billion.”

Andaya suggested that funds for agriculture-related projects be sourced from the rice tariff.

“Pwede naman dagdagan ang budget ng DA based on the programs it will recommend, but taking into account its absorptive capacity,” he said.

“Tutal kung forecast na ang revenues—about P6.2 billion, or sabihin na natin na half lang ang magmaterialize—ibig sabihin may funding source,” Andaya noted.

“Basta DA ang bahala in choosing, bidding out, implementing programs and projects. And these projects must be of use, like irrigation, to all kinds of farmers.”