Despite the good intentions of the Rice Tariffication Law (RTL), Senator Francis “Kiko” Pangilinan on Wednesday, August 27, said that it has failed to deliver its promised benefits to Filipino farmers and consumers, leading instead to increased rice importation that severely hurts farmers’ livelihoods.
Pangilinan, who is the chair of the Senate Committee on Agriculture, Food, and Agrarian Reform, led the second public hearing of the Committee on Agriculture joint with the Committees on Finance and Ways and Means to look into the possible amendments to the RTL.
“Six years after it was enacted in 2019, twin objectives of the rice tariffication law which is number one: to bring down rice prices, and number two: to develop the capacity of our rice farmers and fisherfolk,, mukhang yung twin objectives have not been met,” he said.
“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 ngayon,” he added.
In his opening statement, he pointed out the persistent issues of plummeting farmgate prices, lack of adequate safety nets for farmers, and insufficient support programs to enhance local rice production.
Pangilinan also cited Senator Raffy Tulfo’s privilege speech, wherein he alleged that the Rice Competitiveness Enhancement Fund (RCEF)—funded by the tariffs on imported rice and intended to support the local rice industry after the lifting of the rice import restrictions—has been diverted to cronies of local officials.
“Sino-sino ang mga nakinabang sa P60 billion na RCEF mula 2019 hanggang 2024? Tama ba ang paggastos nito?,” he asked. “Sino ang mga nasa likod ng mga sinasabing ‘manipulation ng presyo’ at sino naman ang pumro-protekta kung meron man sa loob ng pamahalaan?”
The senator explained how rampant rice importation has impacted the local production of rice and their farmgate and market prices.
The Philippine Statistics Authority (PSA) estimated that 2.28 million tons of imported rice is sufficient, but actual volumes have been around 1.7 times higher because of the liberalized rice trade.
This is expected to reach 3.65 million metric tons in 2023, 4.7 million in 2024, and 5.4 million in 2025, the US Department of Agriculture (USDA) said.
“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,” he said.
Pangilinan, who has been running and managing a farm in Alfonso, Cavite for more than a decade, also pointed out the high poverty incidence among rice farmers—the average seasonal income of farmers in 2023 was P41,000, far below the P83,000 needed for a family of five.