Citing the adverse effects of the tariffication of rice imports to rice farmers, a legislator from Mindanao proposed their inclusion in the Conditional Cash Transfer Program administered by the Department of Social Welfare and Development.
“The government should open a new track in helping rice farmers who are facing bankruptcy from the flood of both legally imported and smuggled rice,” Deputy Speaker Mujiv Hataman said.
Hataman, who represents Basilan in the House of Representatives, said that farmers are “reeling from low palay prices caused by the government’s failure to cushion the painful side effects of the Rice Tariffication Law should be directly compensated.”
“I believe that rice farmers should be included in the CCT system of DSWD, that has the experience, personnel, system and network for such a big undertaking,” Hataman added.
“If we do this, we will have two parallel tracks in helping rice farmers. First is through the Rice Competitiveness Enhancement Fund of the Department of Agriculture. Let us retain it. And the other by the DSWD,” he added.
He said the task of the DA is to help the farmers to be more productive. And that of the DSWD could give individual assistance that will tide them over in times of crises like now,” he explained.
Reports indicate that a great majority of some 2.4 million rice farmers have been hard-hit by the 35-percent tariff imposed under the new law. Even officials of the Philippine Rice Research Institute predicted that under this tariff level, 53 of the rice-producing provinces, or 65 percent, will not survive.
Hataman said farmers deserve to receive cash transfers “because they are doing work that ensures the country’s food security.”
Meanwhile, Senator Imee Marcos has said that the government can provide more funding support for rice farmers by activating Section 7 of the rice tariffication law.
She said the same law also allows the President to raise the current 35 percent tariff on rice imports from Thailand and Vietnam.
“The higher 180 percent tariff on rice imports from non-Asean countries can also stand a further increase, “ said Marcos.
Marcos said that in this way, the government can earn more revenue intended for rice farmer support.
“If South Korea and Japan have imposed import tariffs of 500 percent to 800 percent to protect their local farmers, why can’t we?” Marcos asked.
She cited how Singapore prevents rice traders from manipulating prices. It has been cornering 25 percent of private rice imports when smuggling is detected, buying them at cost with a 5 percent margin.
The neophyte senator has sought to quell the panic of local rice farmers over cheap imports that threaten to push down the buying price of palay, even more, when harvest time begins in late September.
Local farmers have lost as much as 41.6% of their investment in August, with the farmgate price of palay plunging to as low as P7 per kilo, compared to their average production cost of P12.
Marcos added that a number of near-term solutions were available to the government to at least bring back the 17-peso support price of palay, like activating provisions in the six-month-old rice tariffication law, tapping into existing support programs, and considering solutions adopted by other Asian countries.
“Let’s not exaggerate that the situation of our rice farmers is hopeless and that little can be done,” she said.
Marcos also said the Department of Agriculture also has a calamity measure known as the Quick Response Fund that can be tapped, Marcos said, to buy palay from local farmers and triple the government’s “currently inadequate” rice buffer stock good only for 30 days.
Recipients of the Pantawid Pamilyang Pilipino Program (4P’s) can also receive rice subsidies instead of cash, with rice bought from local farmers using the P28 billion that the social welfare program provides.
Stricter phytosanitary requirements can also be imposed on rice imports to slow down their entry and market distribution, Marcos added.
The Philippines can also include rice in a “special products list” according to World Trade Organization rules, which allows more flexible trade arrangements when livelihood security is at risk, Marcos also said.
In an agricultural committee hearing last week, Marcos has pressed the National Food Authority to immediately sell more than 4 million bags of imported rice stocked in its warehouses and use expected proceeds of more than P6 billion to buy palay from local farmers.
“We can save our rice farmers if we could just be thorough in our tasks, work hard, and get things done ASAP,” Marcos said.
