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Position Paper R&W

1) The document discusses the Rice Tariffication Law (RTL) that was passed in the Philippines in 2019 to liberalize rice imports. 2) It argues that the RTL is negatively impacting farmers by allowing unlimited cheap rice imports, which could displace farmers and put them in greater hardship by forcing them to compete with lower-priced imports. 3) Additionally, the law could affect related industries, enable the formation of rice cartels, and leave the country vulnerable if major rice exporters restrict exports in the future.

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Ivy Dianne Pascual
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54 views2 pages

Position Paper R&W

1) The document discusses the Rice Tariffication Law (RTL) that was passed in the Philippines in 2019 to liberalize rice imports. 2) It argues that the RTL is negatively impacting farmers by allowing unlimited cheap rice imports, which could displace farmers and put them in greater hardship by forcing them to compete with lower-priced imports. 3) Additionally, the law could affect related industries, enable the formation of rice cartels, and leave the country vulnerable if major rice exporters restrict exports in the future.

Uploaded by

Ivy Dianne Pascual
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Ivy Dianne G.

Pascual 11- Aquamarine


The Abolishment of Rice Tariffication Law
In implementing the RTL, who are benefitedly most? Consumer or Farmers? These past
few months, the Philippine agricultural sector has been in the center of attention of everyone.
The Rice Tariffication Bill or Senate Bill no.1998 was signed by the President Rodrigo Duterte
on February 15, 2019. It was signed because of the issue as urgent due to price inflation on rice.
The Rice Tariffication Law eventually allows the liberation of rice imports. This law will remove
the previous quota on rice imports, permitting traders to import a near-unlimited quantity of rice.
But the farmers were expected to be the most affected since the role of food importation and
distribution has been changed.
Rice Tariffication Law is making the farmers suffer and it is also putting our rice industry
in great danger. The pricing scheme is too much for both consumers and farmers. According to
Raul Montemayor, they proposed a law without considering its possible effects. This new law
lacks the safety nets for Filipino farmers which makes farmer groups outcry that this new law
will make farmers compete with the cheap rice imports, it makes them more necessitous than
ever. There is also a potential displacement to farmers, retailers, and NFA employees
nationwide, according to Anette Tobias. The removal of the restrictions and regulations on rice
imports goes beyond the industry. Industries and businesses affected by the liberalized rice
importations includes the animal feeds and beer industry. The rice bran is used for making feeds
and a shortage in unhusked rice would greatly affect the by-products. This law will also enable
cartels of rice trade and worsened the state of the poor sectors and put them into hunger. There is
no guarantee that retailed rice price will be lower in the long run. Relying on rice imports makes
the country famish. Vietnam, Pakistan, and India restricted their rice exports in rising global rice
prices. The country of Thailand raised an idea of creating a global rice cartel similar to oil
exporting countries.
According to the secretary of DAR, in able to keep the production of profitable and
affordable rice prices to a growing consumer market, the system of the rice production must be
more efficient, more sustainable and more inclusive. Possible saving for the consumers as it
allows no limit in terms of the volume of imports which eventually stabilize prices. In the long
run, our economy could benefit more from the adaption of import tariffs than the implementation
of QRS which limits the entry of commodities and it may lead to unstable prices. The law also
reduce governments role in rice importation and it will lead to more rice import according to the
rice sector. Addressing the urgent need to improve availability of rice will lead more availability
of rice in the country, it will also reduce the prices of rice in the market.
Implementation of RTL was said to be a change and an improvement but as the time goes
by, it gives more suffering to the farmers. This law should be abolished, because it is making not
only the rice industry in crisis but the consumers as well. RTL has a lot of effect that we are now
experiencing, this should be enough to show to the government that this new law will not help us
improving our country.

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