(Eagle News) –The country’s economic managers assured farmers they would have the necessary assistance to protect them from the possible adverse effects of the lifting of the quantitative restrictions on rice imports under the Rice Tariffication Law.
Budget Benjamin Diokno said at least P5 billion has been released under the 2018 national budget for this purpose.
He said this was apart from the P5 billion in Special Allotment Release Order issued to the Department of Agriculture for the National Rice Program in December 2018.
He added this was “complementary to the Rice Tariffication Law’s Rice Competitive Enhancement Fund, or RCEF,” a P10-billion fund that “will help rice farmers transition to a new rice regime.”
“We will make sure that a minimum of P10 billion is made available for the RCEF per year in farmer support programs even if tariff collections are less than expected,” Diokno said.
According to National Economic Development Authority Secretary Ernesto Pernia, “we will also establish transparency and grievance mechanisms” for the farmers.
“On economic impact, liberalizing the rice sector could also translate into upgrades from credit rating agencies, thus lower borrowing costs for the country, besides making it more attractive to investors,” Finance Secretary Carlos Dominguez said.
The Rice Tariffication Law that seeks to liberalize the importation of rice was signed by President Rodrigo Duterte on Feb. 14.
The law is expected to lower the retail prices of rice, help lower inflation by 0.5 to 0.7 percentage points this year, and improve farmers’ incomes, productivity and competitiveness, the Department of Finance said.