Farmers Group Criticizes NEDA for Lack of Coordination on Rice Tariff Cuts

The Federation of Free Farmers (FFF) has expressed dissatisfaction with the National Economic and Development Authority (NEDA) for not coordinating with farmers’ groups in the formulation of the Rice Tariffication Act. During a Senate Committee hearing on Agriculture, Food, and Agrarian Reform, FFF Chairman Leonardo Montemayor voiced his concerns about the lack of consultation regarding the extension of Executive Order No. 10.

Unexpected Extension of Executive Order

Montemayor highlighted that EO 10, originally intended as a temporary measure until the end of 2024, has now been extended until 2028 under EO 50, much to the farmers’ surprise. “That EO was only supposed to be a stopgap or temporary measure. Why [was it extended] all the way to 2028? It seems like it was made permanent without consultation. No consultation was conducted, there were no tariff commission hearings,” Montemayor remarked.

Call for NEDA Chief’s Resignation

The decision to extend the order has led farmer groups to call for the resignation of NEDA Secretary Arsenio Balisacan. Montemayor stated, “According to Secretary Balisacan, this went through the correct process. Nothing of the sort happened. That’s why we were calling for his resignation.”

Concerns Over Imported Rice Prices

Montemayor also expressed concerns about the prices of imported rice, which remain high despite the tariff cuts, and the weakening of the Philippine peso. “We’re worried because right now, the prices of imported rice are still expensive and our peso is weakening… It’s true that [the rice prices] will lower by P7 but only for the landed cost, but it will not happen for retail,” he explained.

Data Discrepancies

Additionally, Montemayor pointed out discrepancies in data provided by the Philippine Statistics Authority (PSA), which initially reported that the national rice stock could only supply 44 days. However, the Department of Agriculture (DA) and FFF’s own analysis indicated a supply of 60 to 66 days. “That is another area that we may have to ensure proper coordination so that the data is correct,” Montemayor emphasized.

NEDA’s Response

In response, NEDA Director Frances Fatima Cabana acknowledged the concerns and promised to relay them to the relevant authorities. NEDA Chief Balisacan defended the decision, stating that the tariff cuts aimed to ensure access to affordable food, particularly rice, while managing inflation and sustaining economic growth. “We are investing in infrastructure, promoting the adoption of modern technologies, improving market and financial access for local producers, and building resilience to climate change,” Balisacan noted.

Future Steps

The PSA also committed to addressing the concerns about data accuracy. The discussion continues as stakeholders seek a balanced approach to supporting local farmers while ensuring food affordability for Filipinos.