MANILA – A team from concerned government agencies being led by the National Economic and Development Authority had buckled down to work in crafting the implementing rules and regulation for the rice tariffication act (R.A. 11203) ahead of the law’s implementation on March 5.
Economic leaders hope that the expected IRR could clear some doubts on the possible effects of the Rice Tariffication Law, which is seen to drive down prices of rice.
But the law also fuels fears it might deal a death blow to the local rice industry by discouraging farmers to produce the staple.
Under the law, quantitative restrictions on rice importation is lifted, fanning fears of a possible glut in low-priced rice in the market, putting local producers at a disadvantage for not being able to compete with the imported supply.
While the law could possibly push down prices of rice by 50 percent, Agriculture secretary Manny Piñol expressed fears the local farmers will be driven out of their farms, and out out of jobs.
But NEDA chief secretary Ernesto Pernia, in a report on Unang Balita, was quoted as saying there is nothing to fear as the prices of rice will dramatically go down.
With the rice tariffication law, the government expects to rake in billions of pesos in revenue with tariff rates ranging from 35 to 180 percent.
But the NEDA pointed out that the revenues will be given back to the farmers in the form of assistance to irrigation, warehousing, farm mechanization, and rice research.
Last Sunday, Sen. Sherwin Gatchalian allayed fears that the rice tariffs law would deal a hard blow to farmers and the local industry, saying that it has a provision allocating funds to help local producers to compete with our rice-producing neighbors.
In an interview on Super Radyo dzBB, Gatchalian said that while the law intends to address low rice supply through non-restricted importation, it also makes sure local farmers will become competitive.
Gatchalian also said that those opposed to the law could do well if they help craft the IRR to make sure that the possible negative effects of the law would be mitigated. (GMA News)
