Ex-Agri chief backs RTL changes

Former Agriculture Secretary Leonardo Montemayor on Friday expressed support to the amendments in the Rice Tariffication Law.

Montemayor, now the chairman of the Federation of Free Farmers, said his group is supporting the review and changes in the Rice Tariffication Law which in 1997 lifted all the quantitative limits in agricultural products.

The National Economic and Development Authority (NEDA) Board, chaired by President Ferdinand “Bongbong” Marcos Jr., on 3 June decided to reduce the rice tariff rate by 15 percent which eventually may result in the reduction of the price of rice of from P6 to P7 per kilo.

Under the Rice Tariffication Law, Montemayor said their policy is free importation of rice that will continue and the National Food Authority (NFA) was prevented from intervening in the price of rice.

However, Montemayor said that in the proposed Rice Tariffication Law amendments are the registration power, licensing power and the price stabilization power of the NFA.

On the power of importation, in the sense that it is very expensive to subsidize rice it depends on how much budget will be given to the NFA to subsidize the same.

“We are supporting the proposal in the House to increase the RCEF [Rice Competitiveness Enhancement Fund] from P10 billion to P15 billion. In fact, in the Senate it was even proposed to increase it to P20 billion,” Montemayor said in a weekly media forum at Club Filipino in Greenhills, San Juan City.

Montemayor noted that the government retreated in the importation of rice, although no one, but only the government can import rice.

The quantitative restriction was removed, which should be replaced with tariff that was initially set at 50 percent but was reduced to 35 percent.

When the Rice Tariffication Law was enacted into law, Montemayor said the supply of rice literally deluged the market, but today the price of rice is very expensive.

“Even under the new Rice Tariffication Law, the unlimited rice importation by the private rice traders will continue,” he said.

The federation is supporting the proposal to again empower the NFA to import rice provided that they are targeted to benefit the poorest of the poor. It has also proposed to restore to the NFA visitorial/inspection powers in so far as warehouses for rice are concerned.  

The former Agriculture chief also urged President Marcos to tackle food security and availability and affordability of agricultural products in his forthcoming State of the Nation Address, as well as comprehensive land use policy which was considered even during the time of former President Rodrigo Duterte.

Montemayor noted that President Marcos certified as urgent the proposed bill on the amendments in the Rice Tariffication Law both in the Senate and the House of Representatives. 

Montemayor likewise slammed China for being too much aggressive in harassing Filipino fishermen in the West Philippine Sea.