"We need monitoring mechanisms to ensure the economic viability of the current rice trade in the country."
"We need monitoring mechanisms to ensure the economic viability of the current rice trade in the country."Since the enactment of the Rice Tariffication Act, the impact on local farmers has been a major area of concern. We are an agricultural country and many of our provinces are rice producers. Sadly, we failed to give timely support to our rice farmers by way of modernization. In terms of industry growth, we are shadowed by Thailand and Vietnam, who are regional giants exporting their rice products to the Philippines.
The Rice Tariffication Act was signed into law in February 2019. The law was premised on an industry that would be able to compete with our Southeast Asian neighbors. Competition is deemed a catalyst to innovation in the rice industry and agriculture in general. All factors considered, can we even compete?
For one, we lack natural irrigation systems, unlike in China with the mighty Mekong river, and other Southeast Asian countries, where natural water sources can easily supply water to rice fields. Our government is constrained to provide irrigation pumps and other facilities to make the land suitable and aid in the harvesting of palay. Also, our industry uses antiquated methods compared to Vietnam, Thailand, and China. This makes rice production expensive in our country.
Now that there is an ease on the restrictions on the volume of rice that can be imported, it behooves our administration to have a watchful eye on the welfare of our farmers. To be fair, the law provides some cushion via the Rice Competitiveness Enhancement Fund or the Rice Fund amounting to P10 billion. The fund aims to provide rice machineries and equipment and seedlings; develop seed development and propagation; and extend credit assistance to farmers. The administration needs to implement safeguard measures that will also serve as a check to the utilization and allocation of the Rice Fund to prevent its misuse.
With respect to over-importation, we need monitoring mechanisms to ensure the economic viability of the current rice trade in the country. The Department of Agriculture, in coordination with the Bureau of Customs, needs to establish a strict monitoring system to account for the entry of rice imports. We also have to be extra vigilant in ensuring that there are no corrupt practices in the importation of rice. Rice is a staple in the Filipino diet. I am concerned that unscrupulous practices such as undervaluation and over-shipment might happen, given the massive demand for this commodity.
There are moves to revisit this law given its immediate impact on our local farmers. While I understand their plight, there is no gentle transition from our traditional farming methods to modernized farming in the context of globalization. I am hopeful that we will reach a point where we will be competitive globally and will rise as one of the most productive agricultural countries.