AGRI COMM PUBLIC HEARING RE RTL | TRANSCRIPT OF SENATOR KIKO’S OPENING SPEECH

Magandang umaga sa ating lahat. Sa executive department, kay Secretary Kiko Laurel, sa mga magpapalay at kanilang mga kinatawan, sa mga kapwa mambabatas mamaya who will be joining us, isang umaga na nawa’y puno ng agarang solusyon.

Bagamat bumaba ng bahagya, mahal pa rin ang bigas sa palengke. Napaka mura ang bilihan ng palay sa bukid, hindi pa rin umuunlad ang kalagayan ng ating mga magpapalay.

Six years after it was enacted in 2019, twin objectives of the rice tariffication law (RTL) which is number one: to bring down rice prices and number two: to develop the capacity of our farmers and fisherfolk, our rice farmers rather, mukhang yung twin objectives have not been met.

Nangako itong ibaba ang presyo ng bigas para sa bawat pamilyang pilipino at itaguyod ang isang modernized competitive rice industry. Pero ayun na nga, hindi ito natupad mapag sa  hanggang sa ngayon.

Today we are holding this first hearing on amending the Rice Tariffication Law based on proposed amendments in Senate Bill 284, and Joint Resolution No. 2, Senate Resolution No. 3 by Senator Erwin Tulfo, among others.

Sa pagdinig natin ngayon umaga, we will pay attention not only to the big picture but also to (the) details. Even as we recognize na may benepisyo, particularly yung dagdag na pondo from the rice tariffs, ang problema lang, paano matiyak na ma-utilize ng tama yung pondo at hindi nabibilaukan ang ating mga ahensya dahil nga mali (at) mababa ang absorption capacity.

Aalamin din natin ang big picture at policy-wise: tama nga ba ang naging epekto ng liberalization ng rice industry gayon at hindi nabigyan ng kasabay na suporta o sapat na suporta ang ating mga magsasaka at yung disruptive na mga nangyayari sa geopolitics at international trade? Paano ikakabit-kabit ang putol-putol na local value chain ng bigas nang lumago at umunlad ang ating pagpapalay at pagbibigas?

Sabi ni Senator Raffy Tulfo sa kanyang privilege speech (na) ang mga opisyal ng pamahalaan,  local ang nag-divert ng RCEF sa kanilang mga political cronies, imbes na ibigay ito sa mga lehitimong magpapalay.

Sino-sino ang mga nakinabang sa halos 60 billion pesos na RCEF mula 2019 hanggang 2024? Tama ba ang paggastos  nito? Sino ang mga nasa likod ng mga sinasabing “manipulation ng presyo” at sino naman ang pumro-protekta kung meron man sa loob ng pamahalaan?

Noong December 2024, nagkaroon din ng house hearing tungkol sa distortions ng ating rice market. Inutusan ng house ang national bureau of investigation (NBI) na imbestigahan ang papel ng mga middlemen sa umano’y pagmamanipula para mapanatiling mataas ang presyo ng bigas. Inimbestigahan din ng Philippine Competition Commission ang usapin ng rice industry at yung supply chain at ang mga hinala o mga suspetiya na mayroon nagmamanipula ng presyo ng bigas.

Ayon rin sa ulat, mismong ang DA ang nag-blacklist ng sampung kumpanya dahil sa smuggling at illegal trade. nais nating malaman ang update.

Mula sa iba’t ibang pag-aaral, ang kalagayan ng industriya ng bigas sa pilipinas, ang mga detalyadong tanong:

1. Tough competition with imported rice. pinapatay ng mas mura at mas maputing inangkat na bigas ang bigas ng ating mga local farmers.

despite p.s.a. estimates that 2.28 million tons per year of imports should suffice, actual volumes have been about 1.7 times higher dahil nga sa liberalized rice trade.

Imports were expected to reach 3.65 million tons in 2023, 4.7 million in 2024, and 5.4 million metric tons in 2025, according to the u.s.d.a.

Ano nga ba ang actual rice import data? Does the data support the statement that the Philippines is the world’s top importer for three years? In a liberalized regime, regulation and oversight are necessary to not only ensure food security, but also compliance with tariff schedules and monitoring of market practices.

2. Increasing rice prices. Baha ng imported na bigas pero mataas pa rin ang presyo sa palengke.

Retail rice prices rose 1.4 times from 2021 to 2024. causes include some exporting countries’ have banned or at least limited their exports, stronger demand from neighbors, el niño and typhoons, high fuel, high fertilizer costs, and yes, including trader manipulation.

Tanong: ano ang quick-response systems ng ating ahensya ng pamahalaan upang matugunan ang mga issue na ito? What agencies do accurate monitoring of private stocks? Among other data, how is DA measuring the rice crop index, yield per unit area, and (the) actual yield of milled rice? Ano ang mga sistema in place to make sure that data are consistently collected and monitored?

Problema no. 3: Low income for rice farmers. Mababa ang kita ng magpapalay. Average seasonal income in 2023 (was) ₱41,000—far below the ₱83,000 needed for a family of five. maraming magsasaka nag shift na sa short-term crops, gulay, prutas o kaya sa ibang trabaho that pay more. support programs exist (yung punla, mechanization, training, credit) pero organized cooperatives ang nakakatanggap, leaving smallholders vulnerable. Mataas ang fees ng mga tenants at siyempre yung usurious loans.

We should also note that most rice farmers are smallholders with limited capital, at kung mayroon man silang asosyan ay masasabing paper organization dahil kulang sa pondo, kulang sa capacity, (at) kulang sa financial literacy.  Relying on “collectors” to deliver palay to drying and milling companies. Supply chain involves multiple layers of traders, retailers, supermarkets, convenience stores, hotels, etc. Sabi ng philrice survey: 61% of farmers sell to traders, 30% to millers, and only 2% each to growers’ associations and the NFA.

So magkano ang budget? Tanong din sa rice programs, projects, and activities ng pamahalaan? Kasama na ba dito ang benchmarking at pagtaas ng kita ng magpapalay?

Finally of course yung high production cost and post-harvest losses. Up to 14% ang nawawala sa ating rice production because of poor post harvest facilities. Yun dapat ang layunin ng RCEF mabigyan ng dagdag na suporta ang ating rice industry para mabawasan itong mga losses. Ang ating production cost ng palay pumapalo anywhere between ₱12 to ₱14, ang vietnam (₱6.2) and thailand (₱8.9). kaya yan ang isa sa mga hamon paano pababain ang production cost natin para matiyak na maging abot kamay ultimately ang bigas sa bawat palengke sa ating bansa. Siguro concern din natin ang implementation ng RCEF dahil sinabi noong 2023 2% lang ang naging ginasta ng philmech, tama ba yun? Doon sa budget nilang bilyon-bilyon, is that right? We will check that later. Ito ang binigay sa atin for 2023 but we will give philmech the opportunity to clarify that, and that’s precisely why we have these hearings.

So we have to:

1. Look into strengthening NFA’s regulatory and market role.

2. Enhance enforcement and accountability lalo na sa usaping pang aabuso sa hoarding, smuggling, at busisiin ang reform ang trade and tariff policies among others.

Bilang panghuli, many of you here I’m familiar with because I was with the Agri Executive Department in 2014 and 2015, chairman of the NFA council, Chairman of the NIA, Chairman of the PCA, and Chairman of the Pesticide and Fertilizer Authority.

Under our watch, we were able to bring down rice inflation from 15% to .8% within the period of 1 year, under our watch, we were able to file cases against NFA employees and managers in 6 regions within the period of 3 months, confiscated about half a billion pesos worth of hoarded smuggled diverted rice together with the PNP and the CIDG, and the NBI. We were able to reject overpriced Thailand and Vietnam rice to the tune of saving 7 billion pesos in a year and a half. Every time we rejected their offers, we gave them 4 hours to submit their second offer, Thailand and Vietnam and everytime they gave us a second offer, it was lower than the first. which is to say, if the NFA is given the right powers and has the right, well, I’d like to think of serious leadership; it can be done. By the end of September 2015, our country, after one year of intervention, experienced the lowest inflation in 20 years. Precisely because when you manage rice inflation, you manage nationwide inflation. Of course that was post pre rtl, when we led the NFA and therefore this is close to my heart and the need to strengthen the NFA is something that we are seriously looking at precisely because the challenges of—the promises of rtl remains to be realized.