Rice import suspension, tariff hike called harmful to PHL’s poorest 30%

THE Foundation for Economic Freedom (FEF) said the proposals put forward by the Department of Agriculture (DA) to address weak prices of palay (unmilled rice) reflect short-term thinking that erode competitiveness and harm the poorest third of the population.

In a position paper, the FEF, whose membership consists of former government technocrats, said measures like  freezing rice imports, raising import tariffs from the current 15%, and price caps are potentially inflationary and at any rate have failed to raise palay farmgate prices since the import freeze took effect at the start of September.

The 60-day rice import freeze is currently under study for a possible extension to the end of the year. It had been imposed to provide relief to farmers, who had been receiving lowball offers for their grain by traders.

Meanwhile, tariffs are being considered for restoration to 35%.

The FEF called for the immediate lifting of the import freeze and maintaining rice tariffs at 15%. It supports investment in research, irrigation, infrastructure, and extension service to increase farmer productivity.

It also called for the government’s rice reserves to be managed by the Department of Social Welfare and Development (DSWD), to make emergency distribution more efficient.

It said the private sector should take the lead in stabilizing prices, leaving the DA with the main responsibility of distributing cash assistance to the 2.2 million rice farmers, which will require a robust farmers’ registry to minimize fake claims. — Andre Christopher H. Alampay