No order to stop rice importation
Food crisis might erupt if Rice Tariffication Law is repealed – Duterte
There is no order directing the Department of Agriculture (DA) to stop rice importation, Malacañang said Monday. “As of this time, there is no order to stop rice importation given Secretary (William) Dar of the Department of Agriculture per the latter,” Presidential spokesman Salvador Panelo said.
Panelo issued the statement following a television report stating that President Duterte ordered the suspension of rice importation to protect local farmers from the impact of the country’s new Rice Tariffication Law. The report added that the President reportedly authorized the purchase of rice from farmers amid their losses from the influx of imported rice in the country.
Financial aid
Finance Secretary Carlos Dominguez echoed Panelo’s statement, saying the deregulated rice policy was not suspended by the President. Instead, the government will provide financial aid to alleviate farmers’ woes amid decelerating farm-gate price of dry palay.
According to President Duterte’s chief economic manager, “the grant of unconditional cash transfers to affected farmers was approved in the last Cabinet meeting.”
Duterte had earlier warned that a food crisis might erupt if the government repeals the
country’s Rice Tariffication Law that lifted rice import quotas.
“I am not about ready to do that. I do not want to have a food crisis again because we have a problem, it is just a serious problem, but if you do not have food, for the people, that is different,” he said in an interview over ABS-CBN’s Failon Ngayon program when asked about the proposed repeal of the rice tariffication law.
“You have more serious challenge there and maybe hard to resolve until there is really food on the table,” he added.
In explaining the need to import rice, Duterte admitted that the country cannot be rice sufficient. “It’s impossible (due to) climate change, then you have the people growth, and the mismanaged problems of the government. Dealing with it is really solving the problem,” he added.
Duterte extended his apology to the farmers and promised to meet them soon to look into their problems.
Instead of repealing the new law, the President offered to hold a dialogue with the local farmers to address their concerns amid his plans to forge a “happy balance” between rice importation and local production.
“Do not despair. We can always correct the wrong. I apologize to you if the result we wanted to get during the early days of my administration has been well, delayed or not good, not to your expectations,” he said.
“I will ask my office to arrange for a meeting with them. If it’s possible to get them to one place so that I will listen and I will resolve the problem,” he added.
Low farm-gate prices
Farmers have reportedly complained about the plummeting cost of palay prices amid the influx of cheap rice imports as a result of the implementation of the Rice Tariffication Law.
The average farm-gate prices of paddy rice have dropped to 115.43 per kilogram from 120 per kilogram price early this year.
The Department of Finance (DOF) noted the wide discrepancy between the farm-gate price and the retail price of regular milled rice in some areas last month.
Based on the DOF’s Strategy, Economics and Results Group monitoring, the average gap between the per kilo retail price of regular milled rice and farm-gate price of dry palay was at 122 in five areas.
In Iloilo, the price difference between rice and palay was at 129.75, Zamboanga del Norte at 128.50, Negros Occidental at 128.01, Kalinga at
125.33, and Bulacan at 125.25. Republic Act No. 11203, signed by the President last February, imposes tariffs on rice in lieu of import limits. The government had earlier said the law is expected to result in lower rice prices and help cushion the impact of inflation for the benefit of the consumers.
Last July, the President told authorities to prioritize the purchase of rice harvest of local farmers over rice importation even if the government would be on the losing end.
In offering a “happy compromise,” the President sought to protect local farmers in allowing rice imports only after the harvest season.
“I can assure you, I will create a happy compromise between the farmers at ‘yung [and] importation. You can be sure that during
your harvest no importation will be allowed. Ayaw ko. That’s what I said,” he said during his Ilocos Sur visit last July.
Defective equipment
Duterte also disclosed plans to inspect agriculture projects, including reported defective farm equipment left unused in some places.
“If needed, we will replace them,” he added.
Duterte said former Agriculture secretary Emmanuel Piñol should explain the “buying spree” of farm equipment that reportedly turned out defective and left unused in some areas in the country.
The President said he wanted to know if the DA consulted the farmers before purchasing the farm machineries that were supposed to enhance their agricultural production.
Duterte issued the directive after receiving complaints about some faulty farm equipment during ABSCBN program’s “Failon Ngayon” aired last Saturday night.
“I think we have to call Piñol to explain why they went to a buying spree for machineries that could not be used. Was there sufficient knowledge beforehand that itong mga machines would really fit what is required in the field. Did they consult the farmers of what the farmers need?” he said in the television interview.
“The machinery seemed to be not in harmony with its users,” he added.
He admitted that they initially did not see any problem in the farm machineries when purchased. “It is only after sinubukan ng mga tao [after the people tried them that] they began to discover the inadequacy or the failure of the machineries,” he added. (With a report from Chino Leyco)