Agriculture Secretary Franciso Tiu Laurel Jr. stressed on Monday that slashing import duty rates on rice is not an anti-farmer policy as this aims to lower the staple’s prices in local markets.
The agri chief said the prices of rice in the international market are very high; hence, the modification of the import levy aims to reduce rice prices domestically.
He clarified, "This is not anti-farmer, as the government pledges to replenish the [Rice Competitiveness Enhancement Fund] to support farmers' equipment and needs."
Laurel's statement came after President Ferdinand Marcos Jr. issued Executive Order (EO) 62 on 20 June of this year, directing the modification of nomenclature and tariff rates on various products to ensure the continuous supply of goods and to protect the purchasing power of the Filipino people.
Duty rates under the order for imported rice are expected to be trimmed by P6 to P7.
Thus, Laurel assured farmers of continued support from the DA, saying that the government plans to determine what assistance will be given to the farmers during the period of lowered tariffs, such as providing more support for mechanization.
“The Department of Agriculture is here to help you; we have plans [to] replenish the RCEF in case there is a shortage. [T]he DA also intends to provide additional fertilizer in the event of a decrease in their income, and the NFA [National Food Authority],” he said, adding the government will continue procuring rice from local farmers at a "very reasonable level".
Under EO 62, commodities, including industrial, animal, and agricultural products, would be subject to the Most Favored Nation tariff rates.
Marcos acknowledges the need for a new multi-year and comprehensive tariff schedule that will provide a transparent and predictable tariff structure, as it will also allow businesses to engage in medium- to long-term planning to improve productivity and competitiveness, facilitate trade, and enhance consumer welfare.
Gearing up for La Niña
In preparation for the looming La Niña, Laurel said the National Irrigation Administration was tasked with improving water impounding, dams, and small dams to trap water as above-normal rainfall is expected during this period.
“There are also irrigation systems being built and solar irrigation being installed, as well as solar-driven pumps to divert the water where it is needed, where it is too much, and to transfer it to another place," he said.
Flood-resistant crop seeds will also be distributed to ensure farmers’ productivity amid the phenomenon.
The weather state bureau, PAGASA, declared on 7 June the end of the El Niño phenomenon in the Philippines.
A La Niña watch was issued in March, signifying a level of more than 55 percent of its occurrence in the next six months.