A group of economists, led by former Socioeconomic Planning Secretary Romulo Neri, is urging President Duterte to sign into law the rice tariffication bill, even if such measure stipulates provisions that remove the regulatory power of the National Food Authority (NFA) to control the entry of imported rice in the country.
Neri, also a former budget secretary under the Arroyo administration, said the measure should have been signed into law a long ago, adding that NFA’s regulatory power is a “source of corruption” and “financial waste.”
“The NFA is inefficient and a cash drain to government and has been [a] failure in its mission,” Neri told the BusinessMirror in a text message.
He, however, clarified that he is against the NFA’s outright abolition in concurrence with Sen. Cynthia A. Villar’s proposal to limit the agency’s function to maintaining the country’s buffer stock by buying from local farmers.
“No more power to import or give import licenses, which is a source of corruption and financial waste,” Neri stressed.
Last week rice industry stakeholders and Agriculture Undersecretary Segfredo R. Serrano sought for a presidential veto of the measure because of the provision deregulating the NFA.
Serrano pointed out that the provision under Senate Bill 1998 would fully liberalize the sector.
Industry stakeholders, including rice farmers and retailers and some NFA employees, converged on the Mendiola bridge last Thursday to call on Duterte to veto the measure, which they described as “anti-poor.”
But Neri begged to differ on this observation, as he said it is a “misunderstanding of the market and human greed dynamics.”
Neri argued that the passage of the rice tariffication bill will also benefit farmers.
“The tariff rate will protect the farmers and revenues can be used to support farmers’ productivity and competitiveness,” he said.
Although Neri hopes that the signing into law of the measure will make a significant impact on the growth of the agricultural sector and remove it from being the weakest link in the economy, he hastened to add, such is not the main intention of the measure.
According to Neri, the bill is intended to lower rice prices and make the system less prone to corruption and manipulation by rice cartel.
Foundation for Economic Freedom President Calixto V. Chikiamco also agreed with Neri that corruption in the NFA will be minimized once the NFA is deregulated.
“The rice tariffication will be good for the economy. It will lower food prices and minimize NFA corruption. Those opposing it are benefitting from NFA corruption due to regulating the rice trade. I hope President Duterte will not veto the bill as it is a major economic reform,” Chikiamco told the BusinessMirror.
He explained that corruption takes place in the agency, as he alleged that the agency gets kickbacks from purchase to transport of rice.
Neri also said passing the measure may finally pave the way for agriculture to grow since too much of the agriculture budget is going to rice subsidy.
University of the Philippines Prof. Ramon L. Clarete, who specializes in international economics and multilateral trade policy, believes that Serrano is “mistaken,” as he also favored that the bill be signed into law.
But economic consultant John Paolo Rivera agreed with Serrano and rice industry stakeholders that deregulating the NFA would mean unregulated entry of rice from the world market, which will decrease price as it competes with local rice.
“Regulating entry of rice will allow us to assess quality and if it meets our standard. I think this is important and should be maintained, as far as this aspect is concerned,” Rivera said, adding that the government must talk first to the stakeholders extensively before passing the bill.
“For me regulation is very important, as this is our control. It is really needed. The fact that there are apprehensions means consultations are still needed,” he said.
Meanwhile, Southern Tagalog’s rice stakeholders have banded themselves together and formed an alliance to promote affordable rice and food for every Filipino.
Called Ugnayan ng Lahat ng Inagawan ng Murang Bigas (UNLI RICE), the group is composed of farmers, scientists, academe, church people, government employees and urban poor, who claim to have been severely affected by what they describe as “unli-rice crisis.”
“UNLI RICE aims to forward the demands of different rice stakeholders and engage the local and national government to address the worsening rice crisis and ensure affordable rice and food for Filipinos,” UNLI RICE coordinator Eddie Billones said in a statement.
“This effort to gather and unite various groups is an expression of the strong desire of the Filipino farmers and consumers to put an end to the government’s dependency on importation and agricultural liberalization. Now that Duterte is set to sign the Rice Tariffication Bill, there is a greater need to unite and reject the bill that will bring about ‘unli-rice crisis’ and food insecurity to the country,” rice watch group Bantay Bigas spokesperson Cathy Estavillo said.
“It should be one of the top agenda of politicians running for office this mid-term election. Their stand on rice tariffication and measures addressing rice woes will determine their sincerity in advancing the welfare of farmers and consumers and if they deserve the votes of the people,” she added.
Image credits: Roy Domingo