DA denies rice farmers lost P68B due to Rice Tariffication Law

The Department of Agriculture on Wednesday refuted claims that rice farmers lost P68 billion in 2019 following the implementation of the Rice Tariffication Law.

“Hindi naman sila nalugi ng P68 billion,” Agriculture Secretary William Dar told reporters in Malacañang, even though he could not immediately provide a counterpart figure from the government.

‘Yung P68 billion ang daming factors na i-consider mo para we should be talking apples to apples.”

According to the non-government Federation of Free Farmers (FFF), the average retail price of regular milled rice (RMR) declined by P2.61 per kilo in 2019 from 2018, while the price for well-milled rice (WMR) went down by P1.99 per kilo. 

If the decline in the per kilogram of prices of RMR and WMR is multiplied by rice consumption volume of 9.466 million metric tons, it will result in P34.16 billion savings or gains for rice consumers.

On the other hand, the average farmgate price of palay declined by P3.62 to P16.78 per kilo from P20.40 per kilo in 2018.

If the palay price difference of P3.62 is multiplied by the palay production volume of 18.814 million metric tons, it will result in P68 billion in losses to farmers, the group claimed.

The Rice Tariffication Law removed most government controls on rice imports in order to enhance the competitiveness of the industry and make the staple more affordable and accessible.

Safety nets were included in the law, which was signed by President Rodrigo Duterte in February last year, including a comprehensive assistance program for farmers worth P10 billion a year for the next six years.

As of February 20 this year, the government has released P1.4 billion to 279,666 farmers affected by the falling prices of palay or unmilled rice, Dar said.

“The interventions of the Rice Competitiveness Enhancement Fund will indeed really help the farmers’ lower production but at the same time increasing their farm incomes,” added National Economic and Development Authority Assistant Secretary Mercedita Sombilla.

“And hopefully also for them to diversify into other sources of income, higher value products that could really increase further their farm incomes.” — BM, GMA News