Revitalizing Philippine Agriculture: Proposed Amendments to Rice Tariff Law

In the Philippines, a significant movement is underway to amend the Rice Tariffication Law (RTL). The Philippine Chamber of Agriculture and Food Inc. (Pcafi) is spearheading this initiative, advocating for changes to enhance local rice production and stabilize food prices. Danilo Fausto, Pcafi’s president, highlights the need for a more flexible allocation of funds under Republic Act No. 11203, which liberalized rice trading. This flexibility is aimed at boosting palay production and improving the livelihoods of farmers.

A critical aspect of these proposed amendments is addressing the underutilization of funds. Fausto suggests the government should incentivize local production of farm machinery and equipment, a sector predominantly reliant on imports from China. By modifying the Rice Competitiveness Enhancement Fund (RCEF), local manufacturing of farm machinery could be encouraged. Fausto envisions a scenario where a local manufacturer imports farm machines and then replicates them through reverse engineering.

The RTL, enacted in 2019, was designed to liberalize the importation, exportation, and trading of rice, along with lifting the quantitative import restrictions on rice. This law is set to lapse in 2024. The RTL also established the RCEF, using rice tariff collections exceeding P10 billion to provide financial assistance to farmers, support in titling agricultural lands, expanding crop insurance coverage, and promoting crop diversification. Of the RCEF’s allocation, P5 billion is earmarked for distributing farm machines, P3 billion for high-yielding seeds, and P1 billion each for farmer training and credit support​