Department of the Finance Secretary Benjamin Diokno said the Marcos administration is not prioritizing a review of the Rice Tarrification Law (RTL).
Diokno said the RTL “has been effective in controlling inflation.”
“I think revisiting the Rice Tariffication Law is not a priority of this government,” Diokno, quoted by a GMA News report, said.
The Finance chief noted that the (RTL) was not mentioned in the first State of the Nation Address (SONA) of President Ferdinand “Bongbong” Marcos Jr., who is also the concurrent secretary of the Department of Agriculture (DA).
Agriculture Undersecretary Kristine Evangelista earlier said the DA will be reviewing and is looking into calls to repeal the RTL, GMA News reported.
According to critics, the RTL has failed to lower the cost of rice, which in turn made life “even more difficult for local farmers due to the entry of cheaper imports.”
Non-government organization Integrated Rural Development Foundation (IRDF) earlier called on the government to earmark more funds for financial aid to farmers bearing the brunt of the RTL saying Rice Competitive Enhancement Fund (RCEF) is not enough to offset the huge losses they acquired, GMA News reported.
The Federation of Free Farmers (FFF) earlier claimed that rice farmers lost a total of P68.18 billion in 2019, which is double of what consumers saved due to lower prices of the grain in the first year of implementation of the RTL, the report said.
The Duterte administration defended the RTL. The previous administration noted rice was the single biggest contributor to inflation, but now had a negative to minimal contribution.
“I think if you are running the government, you must always think of what’s the greatest good for the greatest number. It has an effect on farmers, especially rice farmers, but they are also benefiting from it,” Diokno said.
Republic Act No. 11203 or the RTL, which took effect on March 5, 2019, replaced the quantitative restrictions on imported rice with tariffs of 35 percent to 40 percent and established the RCEF funded by the tariff revenues.
The RCEF is an appropriation of P10 billion, collected from rice import tariffs, in six years or up to 2024 to fund programs for farm mechanization, seed development, propagation, and promotion, credit assistance, and extension services.
