The implementation of Rice Tariffication Law marked a major turning point not
only in the Philippine economy but also to all Filipinos. Rice Tariffication Law also
known as the Rice Liberalization Act or Republic Act No. 11203, was signed into law by
President Rodrigo Roa Duterte on February 14, 2019. It is titled “an act liberalizing the
importation, exportation, and trading ofrice, lifting for the purpose the quantitative import
restriction on rice, and for other purposes.” The said law aims to develop or modernize
the agricultural sector as a method of making the sector globally competitive. With this
law, it removed the limits in the entry of imported rice charged with a tariff, which may
vary depending on the extent of imported commodity. Filipino consumers can breathe a
sigh of relief as retail prices of rice continue to stabilize. However, Filipino farmers see it
as a threat to their livelihood.
As of today, rice still remains as the staple food of Filipinos. It is what consumers
eat and it has no substitute. Due to the factors that affect the production of rice,
increased prices are evident in the market. NEDA Acting Secretary Karl Kendrick Chua
says that few elements ruin the efficiency and intensity of farmers in rice creation. A
portion of these impediments are natural disasters events that harm crops, rocky
territories that are not doable for rice planting, and restricted wellsprings of normal water
systems in the country. Over twenty years after the Philippines set up a nontariff
measure pointed toward securing the rice area, farmers planting the yield are as yet
unfit to contend with their partners in Southeast Asia. Rice Tariffication Law was
enacted to ensure food security by liberalizing rice imports and making farming globally
competitive. Under the Rice Tariffication Law or Republic Act No. 11203, the
accompanying tax rates apply: 35 percent if rice is imported from Asean; 40% if inside
the base access volume (MAV) of 350,000 metric tons from nations outside Asean, and
180 percent if over the MAV and coming from a non-Asean nation.
Rice Tariffication Law is giving limitless rice supplies imported from different
countries. To support this Agriculture Secretary William Dar said, “...the country is
known to import rice from Vietnam, Thailand and Cambodia.” According to Sec. Manny
Piñol, the positive effects of RTL would be, we will be allowing the entry of imported rice
and expectedly, prices of rice in the market will decrease. The usage of RTL has both
positive and negative effects, says Dar. The positive side incorporates the decrease of
retail costs of customary processed rice from the past P45 per kilo in 2018 to a normal
of P37 from September to December 2019 that according to Dar, has profited a great
many Filipinos.
As rice supply increases because of the imported goods, farmers are saddened
for it may cause a threat for them. In spite of the fact that this massively influences our
farmers because of the higher inventory and rivalry in the market, RTL upholds rice
farmers by expanding their efficiency and pay through the P10 billion yearly spending
plan from the Rice Competitiveness Enhancement Fund (RCEF).RCEF comes from the
tax incomes of rice imports. The said P10 billion is designated to cultivate hardware and
gear (P5 million), great rice seed improvement, proliferation, and advancement (P3
million), preparing for aptitudes upgrade (P1 million), and extended rice credit help to
the farmers (P1 million).
"Rice is a piece of the Filipino culture," says, DA Secretary William Dar, "To
make rice creation beneficial and the staple moderate to shoppers, care and creation,
handling, post-reap, and strategic frameworks should be more proficient,
comprehensive, and feasible." To compensate the difficulties, DA Secretary William Dar
shares the endeavors that the public authorities have achieved under the four parts of
the RTL including seeds, automation, credit, and expansion administration.
Rice Tariffication Law will ensure food security through expanding access of
Filipinos to cheaper rice. Nonetheless, the fundamental concern is the negative effect of
the rice tariffication law on neighborhood farmers, saying that the "over stock" of modest
rice could unfavorably influence them following its usage.
References
https://cnnphilippines.com/news/2020/4/1/expert-rice-supply-enough-
quarantine.html
https://mb.com.ph/2020/10/10/updates-on-the-implementation-of-rice-tariffication-
law/?
fbclid=IwAR1GaXZQsgorJ7CAB6HpOWymvSpI86XkLW57f_c8thVJBbDr42QJng
b_G3
https://www.da.gov.ph/rice-prices-dip-at-6-year-low-due-to-rice-tariffication-law/
https://business.inquirer.net/297717/rice-palay-prices-continue-to-
rise#ixzz6ieQ4eO00
