RTL revamp will stabilize supply
Since its enactment in 2019, the RTL has liberalized rice imports to curb inflation, but has also exposed local farmers to steep competition from cheaper foreign grain.
Photo courtesy of DA
The government is moving to recalibrate the Rice Tariffication Law (RTL) as Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. on Wednesday pushed for amendments aimed at cushioning farmers from unregulated imports while ensuring an affordable supply for consumers.
Speaking before the Senate Committee on Agriculture, chaired by Senator Francis Pangilinan, Tiu Laurel said reforms to the RTL are vital to protecting the domestic rice industry and preventing market distortions that threaten farmer incomes and industry sustainability.
“This should provide opportunities to lower costs and improve efficiency, which would lead to increased rice production and improved food security,” the DA chief said.
Since its enactment in 2019, the RTL has liberalized rice imports to curb inflation, but has also exposed local farmers to steep competition from cheaper foreign grain. Tiu Laurel warned that a growing consumer preference for imported rice, driven by price and quality, could trigger a decline in palay prices.
Prices may crash
“This could send palay prices crashing, and rice millers shutting their facilities and just resorting to importing,” he said, adding that the trend could devastate domestic production and food self-sufficiency.
To address these risks, Tiu Laurel presented a seven-pillar reform plan that includes restoring calibrated state intervention in the market, integrating the budgets for Rice Competitiveness Enhancement Fund and the National Rice Program, rebuilding a nationwide extension support system, balancing consumer welfare with farmer protection, sustaining domestic production and planting intentions, modernizing and rebuilding the National Food Authority and providing meaningful incentives to all players in the rice value chain.
He noted that the rice sector will receive a P60-billion allocation in 2026, which must translate to higher productivity and better farmer incomes. “We need to make sure this will lead to higher productivity and income for farmers.”
Lawmakers, including Senate President Francis Escudero, have filed measures to revisit the RTL, reflecting mounting pressure to strike a balance between farmer protection and consumer welfare in the country’s rice policy.