PRESIDENT Duterte said Tuesday night he had ordered the suspension of the importation of cheap rice and the purchase instead of local farmers’ production during the current harvest season. It does not matter if the government will lose billions, he said, as he asked Congress to appropriate the needed funds.
The very next day, however, he announced after a meeting with Secretary of Agriculture William Dar that rice importation under the provisions of the Rice Tariffication Law will not be stopped, to ensure that rice prices remain low for Filipino consumers.
The conflicting decisions within a matter of 24 hours reflect the very difficult balancing act that the government has to carry out on this basic need of the people.
When the President thought last Tuesday that he should help the nation’s farmer, he said: “Lugi tayo ng R3 billion. Why? So the farmers can live. Who will shoulder it? All of us.”
The next day, after a meeting with Secretary of Agriculture William Dar, the President said the importation of cheap rice must continue, to ensure that there will be enough rice for the nation’s consumers. The President may have been reminded of the crisis of high prices last year, when the inflation rate hit 6.7 percent in September, and the rising prices were stopped only when the Rice Tariffication Law was hurriedly passed, allowing unlimited importation of cheap rice.
The unimpeded entry of cheap rice, mostly from Vietnam and Thailand, has since forced rice prices – and subsequently all other market prices – down. Data from the Bureau of Plant Industry shows that 1.7 million tons of rice have already entered the country since last March. By the end of the year, the Philippines will have imported 4.4 million tons, making us the world’s top rice importer, beating even China, the world’s most populous nation.
The net effect of this report on the market will be to keep prices low for consumers – and this is of utmost importance this holiday season.
But the government must not totally set aside the plan to help our farmers. Let the importations continue, but, at the same time, let the government start purchasing all available locally produced rice.
The importation of cheap rice under the Rice Tariffication Law is being funded by private importers, using their own funds. The money for the purchase of local farmers’ production, in turn, will come from the government. Anyway, President Duterte said the government should not mind losing R3 billion if it will help the nation’s rice farmers.
This will be a very delicate balancing act, but with capable officials led by President Duterte and Secretary Dar, we are confident it can be done.
