Farmers: Rice tariff cut a stab in the back

MANILA, Philippines —  Cutting rice tariffs to 15 percent is a stab in the back of the country’s three million rice farmers and the grain industry, according to the Federation of Free Farmers (FFF).  

The National Economic and Development Authority Board, chaired by President Marcos, approved the new Comprehensive Tariff Program for 2024-2028, which includes the reduction of rice tariff for in- and out-quota rates from 35 to 15 percent. 

“NEDA has deprived industry stakeholders of their right to genuine consultation and due process,” FFF national manager Raul Montemayor said yesterday. 

“Normally, proposed tariff changes undergo hearings conducted by the Tariff Commission. Recommendations are then given to the NEDA Board. This procedure was not followed before the lowering of the rice tariff,” he explained. 

Montemayor recalled that during the 2023 Senate hearings on the ratification of the Regional Comprehensive Economic Partnership trade treaty, the executive branch assured rice farmers that rice and other sensitive agricultural commodities would not suffer diminution in tariff protection for the duration of the agreement. 

“That honorable commitment has been rendered worthless by the NEDA Board,” he said. 

“Our experience since trading in the rice industry was liberalized under the Rice Tariffication Law and tariffs were lowered also on non-ASEAN rice imports, (it) has not been salutary. Our dependence on imports from the volatile world market has grown from 10 percent of total domestic consumption to around 25 percent. Rice retail prices have risen,” he added. 

Claims that the 15 percent rice tariff will provide a major and lasting relief to consumers are “more a shot in the dark than a probable result,” Montemayor said.  

Agriculture Secretary Francisco Tiu Laurel Jr. yesterday met with industry stakeholders as part of Marcos’ directive to reduce the retail price of rice in the country. 

“President Marcos wants more affordable rice prices to ease the financial strain on consumers, particularly the poor, as well as relieve price pressures that have kept inflation elevated and interest rates high,” Tiu Laurel said. 

Marcos has lowered rice tariffs until 2028