By Danilo P. Padua, PhD
In 2019, the Rice Tariffication Law (R.A. 11203) was enacted. It was authored by Sen Cynthia Villar who is now into her last few days as a senator.
When the law was enacted, it was presumed that rice prices will go down by PhP7-10.00/kg. A plethora of other benefits for consumers, farmers, taxpayers, workers, children, and the poor were bandied about. To top it all, it was supposed to be a win-win situation for the farmers.
After 6 years of implementation, what happened?
According to Federation of Free Farmers studies, farmers lost PhP40B due to reduced palay prices during its first year of enforcement alone. The farmers were jolted. The promise of better situation never materialized.
Consequently, domestic production was affected as many farmers became discouraged in rice farming because of that law.
Other studies painted no rosy things in relation to the law, although there were really some positive points such as distribution of machineries to farmer association-beneficiaries, hybrid seeds, and good production inputs (e.g. biofertilizers, soil ameliorants). Proper use of such is another matter, of course.
During the opportunities that I travelled around in various places, I certainly found that actual usage of these materials leaves much to be desired. A pity really.
There were instances when there were mismatches of varieties given in certain locations, seed supplies did not arrive on time for planting, or insufficient seed supplies. The proper use of production inputs was not attended properly in many cases; farmers were clueless on how to use them, or responsible government personnel did not heed the instructions from higher-ups.
There were significant differences in the farmgate and retail prices which were attributed, according to studies, to the manipulation of rich traders and middlemen? This happened because there was no agency tasked to oversee manipulation of middlemen in the rice market.
The NBI even uncovered a rice repacking scam somewhere in Bulacan where old stocks were repacked with imported rice and sold as new.
Studies that were given ample spaces in mainstream media clearly showed that larger businesses and traders, (or those close to the powers that be?) dominated the rice importation activities. Because there was no one looking for their actions after importation, they can do what they want to the imported rice; store it, release it, withhold it for as long as they want, or whatever! They were merrily dancing, as they count their good fortune – at the expense of the farmers, consumers, and the poor.
So, it’s not hard to visualize why the main aim of RTL to reduce rice prices and improve market efficiency was not delivered by the law.
In sum, RTL has become a constant pain in the ass, especially to the people that it purported to shield and help-the farmers
What adds to the grim scenario is the persistence of critics who should know better. They keep on taunting and blaming the president for the high rice prices, but failed to reckon that the problem is largely brought about by the enactment of a law by the previous administration.
Farmer groups were agitating to repeal RTL as it also made the Philippines the top rice importer in the world for the last 4 years. No dice.
PBBM introduced a revision of the law, extending the Rice Competitiveness Enhancement Fund until 2031, and raising the government’s support for farmers from PhP10B to PhP30B. This is through R.A. 12078 signed last Dec 9, 2024.
As the rice prices continue to fly high, the government declared 3 months ago, a comedic emergency: the Food Security Emergency (for rice), although there was no actual shortage of rice supply locally. Somehow the declaration, helped reduce rice prices a little bit. It’s a start.
The call by various sectors for the revision of RTL that should include resumption of NFA as rice importer and local distributor was blunted by the opposition of Sen C. Villar who believes that such proposal is inappropriate. She says, that is mistake of the past that should not be repeated. That reads: “let us just rely on rice importation so rice farmers will be disillusioned and eventually abandon rice farming, which is aligned to our business”.
Since the elections is barely 2 weeks to go, let us find and elect senators and congressmen who have the guts to fight for the repeal or revision of RTL. And a big heart for the interest of the people.**
