Removal of tariff on hybrid rice seeds pushed

Rice industry stakeholders are urging the government to remove the tariff on hybrid rice seeds and allocate a portion of the P10-billion fund for improving hybridization.

SL Agritech Corp., the largest producer of hybrid rice and seeds in the country, sought the removal of up to 50 percent levy on imported hybrid rice seeds.

“This will have a huge effect on our farmers. All seeds especially hybrid cannot be produced in the Philippines since we do not have a compact area due to land reform,” SL Agritech technical advisor Frisco Malabanan told reporters yesterday.

The rice tariffication bill was already submitted to the Office of the President last month and will lapse into law if not acted upon next week.

“If we will follow the proposed tariff bill, tariff will be up to 50 percent. Hybrid seeds are already costly. The tariff will further discourage farmers to plant more,” he added.

The government has been pushing for improved hybridization as average yield can reach up to 10 metric tons (MT) per hectare per harvest compared with the current four MT per hectare.

“We will be self-sufficient if we plant up to 1.5 million MT of hybrid rice. We won’t need to import from neighboring countries for our food security,” Malabanan said.

Of the nearly 600,000 MT hybrid rice area, 60 percent of the seeds are locally sourced, while the remaining 40 percent is still being imported.

“We can produce more hybrid seeds locally, but we cannot get compact rice areas where we can actually plant the seeds. The whole industry will be affected once we tariffy,” he said.

Malabanan said the government should include hybrid rice in the beneficiaries of the P10 billion initial subsidy.

“Based on the RCEF, they only include inbred rice seed development production and promotion. But we need to include hybrid because that is the latest technology that could help our farmers increase production and be competitive,” Malabanan said.

The RCEF allocation includes P5 billion for farm equipment, P3 billion for research and seed inputs, P1 billion for training and another P1 billion for credit facilities.

“The industry needs more inputs like hybrid rice, fertilizer, and extension services. They should not put 50 percent of the P10 billion just for machines,” he said.