Lawmakers on Wednesday expressed their opposition to the decision of economic managers not to push for the extension of the quantitative restriction (QR) on rice, which will expire next year.
House Committee on Economic Affairs Chairman and Bohol Rep. Arthur C. Yap and Party-list Rep. Tomasito S. Villarin of Akbayan said removing the rice-import quota will make it more difficult for farmers to compete in Asean.
“My concern is that, when you lift the QR, it will open up the Philippines to more rice imports. While this will benefit millions of consumers, I feel we should prepare to address the dislocation of [farmers] who will not be able to compete,” Yap told the BusinessMirror in an interview.
Yap, a former agriculture secretary, said the government should consider deferring the removal of the QR for a year, so it could implement the necessary measures to mitigate its adverse impact on rice farmers.
“I think we should ask for a one-year deferment. I will ask the [national government] to submit a list of possible farmers who will be affected, so they could be included in the Conditional Cash-Transfer Program of the government,” he said.
“The government could also consider putting in place microfinancing schemes and assist them in accessing the shared services facilities of the Department of Trade and Industry,” Yap added.
The lawmaker noted that Manila could make a “special request” to the World Trade Organization (WTO) to allow “special treatment” for commodities that are critical to a country’s food security.
Yap also said President Duterte should certify as urgent several bills that seek to help farmers.
“The President has promised that he will provide free irrigation water so maybe the bill reforming the National Irrigation Administration (NIA) must be certified as urgent,” he said.
“Crop insurance in the country is also not enough, that is why amendments to the Philippine Crop Insurance Corp. [PCIC] must be certified as urgent, as well. There is also a bill seeking to institutionalize the Agricultural Guarantee Fund Pool,” Yap added.
There are several House bills seeking to reform the NIA and the PCIC. Amendments to the PCIC aim to allow the agency to offer index-based insurance coverage and engage in reinsurance to increase its funding source.
Proposals to institutionalize the Agricultural Guarantee Fund Pool seek to include postproduction in its coverage.
“If the government wants to lift the QR, then these measures must be in place. But even if these measures are prioritized and certified as urgent, the government’s social protection programs must be implemented for affected sectors,” Yap said.
‘Magnificent 7’
Villarin said his group in the House of Representatives, dubbed as “Magnificent 7,” will reject the recommendation of the National Economic and Development Authority (Neda) to scrap the rice-import quota.
“Primarily, the DA [Department of Agriculture] should decide on this and not the Neda. With the lifting of the QR, the National Food Authority will be toothless in terms of rice imports. But I hope the Neda should change its mind,” he said in separate interview with the BusinessMirror.
“For the longest time, we’ve been buying from other rice-producing countries. Are we now saying that we can compete with them?” Villarin added.
The lawmaker urged the House of Representatives to immediately table for discussion his House Resolution 392, which seeks to clarify the implications of lifting the QR on rice next year.
Villarin said Agriculture Secretary Emmanuel F. Piñol told him during the DA’s budget briefing that he is personally not in favor of lifting the restrictions on imported rice and would, instead, ask for an extension of two more years.
“Ideally, such period of extension will give authorities time to spur long-awaited developments in the agriculture sector, allow small farmers to stabilize their production and to compete with fellow producers, both within and outside the country,” he said.
“I fully support efforts to help our farmers profit from plowing their fields,” Villarin added, “but the first step in helping our farmers is to tell them the truth about the real and growing challenges in their field.”
Earlier, Piñol said the QR must be extended for two more years to allow Filipino rice farmers to compete with their Asean counterparts. The DA chief also said that, if the QR is eventually lifted and more rice imports would enter the rice market, Filipino farmers would be discouraged from planting the staple, as rice from neighboring countries is cheaper.
Earlier, Socioeconomic Planning Secretary Ernesto M. Pernia said the removal of the QR quota next year is a “done deal,” as three members of the core economic cluster have already agreed on the scrapping of the rice-import quota.
“The Neda and the DA must disclose to the public the policy adjustment the administration will make in order for the affected sectors to cope with the lifting of the QR on rice,” Villarin said.
He added that the Tariff Commission and other appropriate agencies should also reveal how the current tariff and nontariff regimes for rice has fared in terms of providing actual protection to the country’s rice farmers.