Setting a tariff schedule on the country’s rice imports could lead to more stable international rice prices moving forward, according to the Asian Development Bank (ADB).
In an interview at the sidelines of the recently concluded ADB Annual Meeting in Manila, ADB Philippines Country Director Kelly Bird told the BusinessMirror that the Manila-based multilateral development bank supports the government’s move to finally end its quantitative restrictions on rice. The Philippines is converting its QR on rice into a tariff schedule in compliance with commitments to the World Trade Organization (WTO).
“By converting to a tariff, and you’re allowing importation of rice, then you generally have more stable prices. You have stable supply. And then I guess the tariff would be set so that it also encourages the domestic price of rice. It is a much more preferred approach to managing a particular sector, particularly the agriculture sector,” Bird said.
Bird added a QR would cause more volatility in the international market because it pegs commodity prices to a certain level. This prevents prices from adjusting to the demand for certain commodities.
Further, Bird said setting a tariff would boost local production because there is more stability in the global and domestic markets.
Ample supply is part of ensuring food security. This is especially important because the Philippines is a net importer of rice.
Promoting food security not only in the Philippines but also in other developing member-countries (DMCs) is part of the priorities under the ADB Strategy 2030.
“The ADB will focus on rural roads, market infrastructure and agri-logistics centers to enable the integration of more producers, agribusinesses and consumers into national, regional and global food systems. Reducing postharvest losses and promoting agricultural value addition will help increase rural incomes and enhance food security,” the document stated.
The ADB said it would help the DMCs increase agricultural productivity and reduce poverty by boosting farm and nonfarm incomes.
This means, the ADB added, promoting the adoption of advanced technologies, such as satellite and drone-assisted applications, to increase irrigation efficiency and to ensure the sustainable use of land and water resources.
It also said that the ADB would promote the use of climate-smart agricultural practices, such as the introduction of drought-resistant crop varieties and drip irrigation.
“The ADB support will improve natural resource management standards by undertaking land reclamation, reforestation and watershed-management projects to reduce soil erosion and improve biodiversity,” the ADB stated in the draft Strategy 2030.
Strategy 2030, a new long-term strategy seen released this year, renews the ADB’s commitment to eradicate extreme poverty in Asia and the Pacific and expand its vision to achieve a prosperous, inclusive, resilient and sustainable region.
In his remarks, ADB President Takehiko Nakao said Strategy 2030 will address existing and emerging challenges. Strategy 2030 will be aligned with the international agenda, including the Sustainable Development Goals and the Paris Agreement on climate change.
Strategy 2030 will have 10 priorities—tackle remaining poverty and increasing inequalities in Asia and the Pacific; accelerate progress in gender equality; scale up support to combat climate change; build climate and disaster resilience, and enhance environmental sustainability; build livable cities that are competitive, green, resilient and inclusive; and promote rural development and food security.
The priorities include strengthening governance; fostering regional cooperation and integration; mobilizing private-sector resources to meet the region’s huge development financing needs; furthering strengthen the ADB’s role as a provider and facilitator of knowledge; and pursuing a stronger, better and faster ADB.
Image credits: Nonie Reyes