English
Philippines: Palace sees smooth sailing for rice tariffication bill
MANILA, Philippines — Malacañang yesterday expressed optimism that the rice tariffication bill would face smooth sailing in the bicameral conference committee after the Senate approved its version of the measure.
The bill, which aims to replace the quantitative import restrictions on rice with tariffs, was approved on third and final reading by the Senate Wednesday.
The House of Representatives passed its version of the bill last August.
A bicameral conference committee will have to reconcile the two versions before the bill is ratified and sent to President Duterte for his signature.
In a statement, Presidential spokesman Salvador Panelo said they are confident the measure, once enacted into law, would protect the rice industry from sudden price fluctuations and ease the burden of consumers from soaring prices.
“We remain optimistic that the bill would also run smoothly during the bicameral conference committee deliberations by both houses of Congress,” he said.
Duterte has certified the passage of the bill as urgent, citing the need to ensure the availability of rice in the country to reduce prices, prevent artificial rice shortage, and curb corruption and cartels.
House agriculture committee chairman and ANAC-IP party-list Rep. Jose Panganiban, Jr. previously said the rice tarrification bill would generate P20 billion in tariffs every year that could subsidize the country’s rice farmers.
Meanwhile, rice watch groups yesterday hit the Senate for approving bill.
In a joint statement , Bantay Bigas and the National Federation of Peasant Women or Amihan said rice tariffication is disastrous for the Filipino rice farmers, consumers and the local rice industry.
“While the bill has been hyped by the Duterte government as a necessary measure to ease inflation, flooding the local market with imported rice will not necessarily lower rice prices,” Bantay Bigas spokesperson Cathy Estavillo said.
According to the think tank Ibon Foundation, there are three primary factors in determining rice retail prices: the local production cost and productivity, marketing cost controlled by traders and middlemen, and world market price.
Estavillo said the government could increase farmers’ productivity and lower the production and market cost by implementing free land distribution and providing farm inputs and post-harvest facilities.
“But the government narrow-mindedly chose the volatile world market which it has no control over. The government’s dependence on importation and allowing the importation by the private sector would only result in the increase of rice prices.”
Data from Ibon Foundation showed that if the landed cost is at $500 per metric ton, the tariffied landed cost (P36 per kilo) will only be slightly lower than the dominant local price but if global price reaches $600/MT, the tariffied landed cost would be as high as P43 per kilo, excluding the hauling charges added on by traders.
Meanwhile, Amihan chairperson Zenaida Soriano said rice tariffication would result in lower income for rice farmers as farmers could not compete with the flooding of subsidized rice imports in the domestic market with an expensive cost of production and backward agricultural technology which is further aggravated by lack of government support. – With Rhodina Villanueva
Source: https://www.philstar.com/business/2018/11/16/1868889/palace-sees-smooth-sailing-rice-tariffication-bill#wPW7igKoWTe3Ljw4.99