Filipinos can expect lower prices of rice following the approval of a new law that imposes tariffs in lieu of import limits on the staple, Malacañang said yesterday.
Republic Act No. 11203 or “An act liberalizing the importation, exportation and trading of rice, lifting for the purpose the quantitative import restriction on rice, and for other purposes” was signed by President Duterte last Feb. 14.
The rice tariffication law takes effect 15 days after publication in the Official Gazette or in newspaper. A copy of the law was released to the media yesterday.
“This law is expected to result in lower rice prices and help cushion the impact of inflation for the benefit of the consumers,” Panelo said.
Panelo assured that the law has ample safeguards to protect the welfare of local farmers amid concerns raised by some groups about the influx of cheaper rice from abroad.
“The law, at the same time, protects our farmers from the emerging competition as a result of its implementation through a direct safety net and productivity support in the form of the Rice Competitiveness Enhancement Fund,” he said.
Under the new law, a 35 percent import tariff will be imposed on rice imports coming from the Association of Southeast Asian Nations. For non-ASEAN member states, the government will collect a 50 percent tariff for rice imports.
The law also states the creation of the Rice Competitiveness Enhancement Fund with an annual allocation of P10 billion for the next six years.
“It is the policy of the State to ensure food security and to make the country’s agricultural sector viable, efficient, and globally competitive. The State adopts the use of tariff in lieu of non-tariff import restrictions to protect local producers of agricultural products,” it said.
At least 50 percent of the Rice Fund will be used for rice farm machineries and equipment; 30 percent for rice seed development, propagation, and promotion; 10 percent for expanded rice credit assistance; and 10 percent for rice extension services.
If the annual tariff revenues exceeds P10 billion, the excess revenues would be earmarked for rice farmer financial assistance, titling of agricultural rice lands, expanded crop insurance program on rice, and crop diversification program.
“The beneficiaries of the Rice Fund shall be those farmers and farm workers and their dependents listed in the Registry System for Basic Sectors in Agriculture and rice cooperatives and associations accredited by the DA,” the law said.
The law also directed the DA and concerned government agencies to formulate and adopt the “rice roadmap” to restructure the government’s delivery of support services for the rice sector. (Genalyn Kabiling)
