Even with the issuance last week of Executive Order No. 62, reducing imported rice tariffs from 35 to 15 percent, effective July 6, farmers would not take this sitting down and are filing a petition for temporary restraining order before the Supreme Court.
Farmers group Samahang Industriya ng Agrikultura (SINAG) held a press briefing Sunday, June 23, to denounce the arbitrary issuance by the President, upon recommendation of the National Economic and Development Authority, of EO 62 on the tariff reduction that would last until 2028 on its adverse impact on local rice production and prices.
Virginia Lacsa Suarez, SINAG legal counsel, cited the “unreasonable” reduction in tariffs and the absence of consultation and public hearings by the Tariff Commission as reasons for filing the petition.
“We do not even know the recommendation made by the National Economic and Development Authority (NEDA), then suddenly there is this EO 62. So this is surprising to us. Why the rush? What is at stake here is the livelihood of Filipino farmers,” she asserted.
Suarez added that farmers’ groups are under time constraint because EO 62 specifies that the tariff for rice will be slashed to 15 percent after 15 days of the publication in the Official Gazette or a newspaper of general circulation.
Legal means
She vowed to do everything to prevent its implementation by filing for a TRO or a writ of preliminary injunction before the High Tribunal.
She said they would seek audience with the President to withdraw the EO.
“We should be helping Filipino farmers, but in reducing the rice tariff, we are bailing out the planters of other countries,” she added.
The groups also said they plan to file a separate case to the Ombudsman against the NEDA and the members of the Tariff Commission. “They failed to do their duty and they even violated the law because they did not consult farmers and did not conduct public hearings,” Suarez said.
The groups emphasized that the tariff cut will negatively impact local producers and will only benefit rice exporters.
“Around 500,000 farmers ang estimate namin na madi-displace. ‘Yung projection ng USDA, next year additional 1-million metric ton ang papasok sa Pinas. So ito ay nakakabahala dahil magsu-surrender ang local farmers natin doon sa pagbaba ng taripa,” SINAG President Rosendo So said.
“Kapag ibinaba mo ‘yung taripa, ini-invite mo ang importation lalo at hindi natutugunan ‘yung problema ng ating magsasaka. Talong talo tayo sa pagpapababa ng taripa dahil wala naman tayong control sa pagtaas ng presyo,” Saurez said.
Despite pronouncements by government officials, the reduced tariff on rice imports would not necessarily translate to lower retail prices, while at the same time jeopardizing the livelihood of subsistence rice farmers.
“Parang minadali at ginawan ng paraan para ma-publish at maging effective agad,” she added.
They also reiterated that the reduction in tariffs on imported rice will not automatically reduce the rice prices in the market.
Republic Act No. 10863 or Customs Modernization and Tariff Act (CMTA) mandated the TC to conduct an investigation and hold public hearings wherein “interested parties shall be afforded reasonable opportunity to be present, to produce evidence and to be heard” before any recommendation is submitted to the President by the Neda.
Electioneering at agri’s expense?
Some industry sources are saying that the rush in reducing tariffs on rice and other agricultural commodities would serve as a “goodwill” for this administration's candidates come elections next year and to raise funds for the administration party amid a debt-strapped government.
Hog farmers whose sector would also be directly affected by the reduced tariffs are already thinking of quitting raising hogs. Should this materialize, then the country would depend 100 percent on imported pork, with global suppliers also facing swine fever and other diseases.
National Federation of Hog Farmers Inc. (NatFed) Vice Chairman Alfred Ng said: “Many producers, especially backyard farmers, cannot continue if they do not have government support and if tariffs on pork imports remain low.”
“Only a few brave souls tried to venture into hog raising again but the backyard farmers have no capital. They are waiting for the government to come up with a solution to their predicament, he said projecting that imports this year would surpass last year’s volume of 600,000 MT.”
The US Department of Agriculture meantime said rice imports of the Philippines would quicken making the country retain its top position as global rice importer this year and next with importations reaching 4.6 MMT in 2024 amd 4.7MMT in 2025. The surge is principally due to reduced tariffs, the USDA said.
As of June 6, the Philippines imported 2.17 MMT mostly from Vietnam, data from the Bureau of Animal Industry showed.
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