INDUSTRY groups are seeking lawmakers’ intervention to void President Duterte’s Executive Order (EO) 135 reducing the tariffs on rice imports to 35 percent, describing the measure as baseless and detrimental to farmers.
The Federation of Free Farmers (FFF) wrote to both chambers of Congress to seek lawmakers’ intercession in voiding EO 135 while the Samahang Industriya ng Agrikultura (Sinag) wrote to senators, including Senate President Vicente Sotto III, for the same matter.
In its letter to lawmakers, FFF argued that the reduction of rice tariffs is “totally unjustified” and the reasons cited by the Office of the President about the measure are “baseless.”
FFF pointed out that the country’s rice market is already “wide open” for imports from any country following the enactment of the rice trade liberalization law, which deregulated the industry.
“There is no need to reduce tariffs nor is there any assurance that imports from non-Asean countries will increase simply because of a lowering of tariffs on their rice exports,” it said.
Furthermore, FFF said the country has ample rice supply given the abundant rice harvest and continued arrival of rice imports while retail prices of the staple have remained stable as well.
“Department of Agriculture [DA] Secretary Dar has repeatedly issued public statements that we have ample stocks. He has not made any statement alluding to any imminent or projected shortage in rice supplies,” it added.
FFF said global prices have “already softened” and an earlier increase in world market prices did not even affect local retail prices.
The group added that there is also “assurance that lower import costs will translate into cheaper prices for consumers” and the best way to address “uncertainties” in supply is to “encourage” higher domestic production.
“If the economic managers fear that traditional suppliers like Vietnam and Thailand may constrict their exports to the country in the coming months, there is also no assurance that countries like India and Pakistan will automatically fill in the slack as a result of lowered tariffs,” it said.
FFF cautioned that the Covid-19 situation in India could “severely restrict” their capacity to export to other countries.
“While Pakistan ranks fourth among the world’s exporters, a large percentage of its exports consists of basmati rice which is too expensive and at the same time not palatable to most Filipinos,” it added.
Given the above-mentioned reasons, FFF asked lawmakers to conduct an investigation on the issuance of EO 135 as it sought the immediate revocation of the measure.
Sinag’s letter
In a similar move, Sinag wrote to Senators Sotto, Cynthia A. Vilar and Francis Pangilinan to air their concerns regarding EO 135.
“Like a thief in the night, we were all surprised to read EO 135 that significantly reduced the tariff rates on rice,” it said.
“This was done behind our backs; as we, the stakeholders, the Philippine Senate and the economic team of the government were forging a compromise on the MAV [minimum access volume] allocation and pork tariff rates,” it added.
The group argued that there is no problem in the country’s rice sector unlike in the pork industry which has been suffering from African Swine Fever.
“Where is the crisis? Where is the need to augment our supply?”
The group sought the senators’ immediate intervention on the matter and asked for the revocation of the EO “if warranted.”