Speaker: RTL amendments, reduced import tariff both needed to lower rice prices

The House of Representatives will continue to push for the passage of the bill amending the Rice Tariffication Law (RTL) to reduce rice prices even with the looming reduction of tariffs on imported rice, Speaker Martin Romualdez said.

The proposed bill allows the National Food Authority to buy and sell rice to the market anew, just like before the RTL was passed.

“We would like to look at all of these approaches, one for targeting the imported rice, and one with the NFA [National Food Authority], because we want to make sure that we stabilize the price of rice. We will have a lot of options, the complete arsenal of legislation and tariff reduction. That is what we are here for,” Romualdez said in a press conference.

House agriculture committee chair Mark Enverga said that the imported rice tariff collection for the year so far has reached P16 billion, which means this amount is still enough to cover the RTL's proposed amended target of P15 billion, to be used for subsidizing farmers.

“We already have P16 billion so we are assured that we have enough for next year,” Enverga said.

“Worst case scenario, if it falls short, the government will fund it,” he added.

The National Economic and Development Authority (NEDA) earlier approved the reduction of rice's duty rate to 15% for both in-quota and out-quota rates until 2028.

In the same press conference, the Speaker assured farmers that reduced tariffs for imported rice won’t be at the expense of reducing the available locally produced rice in the market.

“There is nothing to fear about massive importation. Our priority is still locally-produced rice. We only resort to importation only to offset our shortfall in rice production,” Romualdez said.

“We are only reducing tariffs to absorb price shocks in the world market and free-fall in foreign exchange. This is just a stop-gap measure and our goal is still rice sufficiency and affordability. Parang kapag may lagnat, lalagayan mo ng bimpo [para bumaba ang temperatura],” he added.

(It’s like if someone has a fever, you use a cool washcloth to lower the temperature.)

Romualdez also echoed Enverga’s sentiments and assured farmers that the subsidies in rice production will continue even with losses in revenues as a result of the reduced tariffs on imported rice.

“The government has enough resources to continue the subsidies, and Congress is ready to provide more funds if still needed,” Romualdez said.

Aside from Enveraga, present during the meeting were Undersecretary Christopher Morales of the Department of Agriculture, Assistant Secretary Agaton Uvero of the Department of Trade and Industry, and Deputy Commissioners Vener Baquiran and Clarence Dizon of the Bureau of Customs, House Appropriations Committee Chairman Zaldy Co of Ako Bicol Partylist, Deputy Majority Leader Erwin Tulfo of ACT-CIS Party-list and SM Prime President Jeffrey Lim and Puregold President Vincent Co. — BM/RF, GMA Integrated News