MANILA – The National Economic and Development Authority (NEDA) on Tuesday said the recently signed Republic Act No. 11203 or the Rice Tariffication Act will ensure that market rice prices would remain affordable.
The law, signed by President Duterte on Feb. 14, amended the two-decade-old Agricultural Tariffication Act of 1996. It replaced the quantitative restrictions on rice imports with a 35 percent tariff.
Government agencies had started preparing for the law’s implementation as early as January 2019, with NEDA said to lead in crafting it’s Implementing Rules and Regulations (IRR).
The IRR Drafting Committee has members from NEDA, Department of Budget and Management, Department of Agriculture, and other concerned government agencies, with technical working groups created to discuss key provisions of the bill and provide inputs to the draft IRR.
The first draft of the IRR was formulated during a two-day workshop last week, and was presented to the National Food Authority (NFA) Council on Feb. 18.
Socioeconomic Planning Secretary Ernesto Pernia said that a revised draft IRR would be subjected to public consultation in the coming days.
Draft
The draft IRR contains provisions on the removal of NFA’s regulatory powers and the streamlining of import requirements.
It also provided details on the necessary institutional arrangements that would enhance competitiveness and institute safety nets to assist local farmers affected by the removal of the QR on rice imports.
“Anyone, whether a small or a big trader, can now import as long as they have secured a Sanitary Phytosanitary (SPS) clearance from the Department of Agriculture and paid the corresponding tariff. By removing NFA’s decades-old monopoly on rice importation, we promote greater participation of the private sector and enhance competition in the market,” said Pernia.
He added that safety nets were included in the new law, among which was a comprehensive assistance program worth P10 billion a year for the next six years.
The Rice Competitiveness Enhancement Fund (RCEF) would also be used to provide key interventions to support farmers and enhance their competitiveness and profitability, including farm machinery and equipment to improve farm operations, rice seed development, propagation, and promotion, expanded rice credit, and extension services.
A portion of the rice tariff revenues in excess of P10 billion would meanwhile be used to provide direct financial assistance to rice farmers affected by the removal of the quantitative restriction and for diversification to high-value crops.
Furthermore, a mandatory review of the RCEF would be conducted by Congress on the sixth year.
Pernia said that the law also grants the President the power to increase, reduce, revise or adjust existing tariff rates to safeguard Filipino farmers.
Shortage
In case of imminent danger of rice shortage, the bill also empowered the president, for a limited period and for a specified volume, to allow importation at lower tariff rates for the benefit of consumers.
Pernia said that a special safeguard duty on rice would also be imposed to protect the rice industry from sudden or extreme price fluctuations. A safeguard duty is a temporary increase in import duty of an agricultural product to deal with import surges or price falls, under the WTO Agreement on Agriculture.
“The new law not only puts in place a new and efficient rice regime but also widens the horizons of productivity and sustainability of the country’s rice sector. With this law, concerned government agencies, including NEDA, are mandated to craft a Rice Industry Roadmap. This development plan will detail strategies related to research, production, and governance mechanisms, among others.”
The law provides a maximum of 180 days from the law’s effectivity date for the formulation and adoption of the Roadmap. (GMA News)
