Push Admin

Why are agricultural groups opposing lower rice tariffs?

Article (news)

ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="Mark Demayo, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/life/09/26/20230926-dof-farmers-protest-md-6.jpg"/><figcaption>Farmers and agricultural groups picket in front of the Department of Finance in Manila on September 26, 2023, calling for the resignation of Finance Secretary Benjamin Diokno and NEDA Secretary Arsenio Balisacan. The protesters slammed proposals to reduce tariffs on imported rice and other prime agricultural commodities. <em>Mark Demayo, ABS-CBN News</em></figcaption></figure></div><p>MANILA — Agricultural groups on Tuesday reiterated their opposition to lowering tariffs, a move that economic managers said would lower rice prices but that farmers fear could ruin local agriculture.</p><p>President Ferdinand Marcos Jr. earlier this month imposed a price cap on regular milled and well-milled rice, saying it is among the measures the government is taking to stabilize prices.</p><p>Other measures include cracking down on alleged rice hoarders and lowering tariffs on rice to between zero and 10 percent from the current 35 percent.</p><p>Socio-Economic Planning Secretary Arsenio Balisacan and Finance Secretary Benjamin Diokno have said this will mean rice importers and traders will not need to raise prices too much to make a profit. Groups, including the Samahang Industriya ng Agrikultura, have warned that this would hurt local agriculture and have called on Balisacan and Diokno to resign. </p><div><strong>What are tariffs anyway?</strong></div><p>Tariffs are taxes collected on imported products and, according to the Rice Tariffication Law, &quot;[earn] revenues for the government and [are] regarded as instruments to promote local industries by taxing their competitors.&quot; </p><p>Because of the tax, locally-produced products will generally be more affordable than imported goods.</p><p>According to a briefer on rice tariffication by the Philippine Rice Research Institute, revenues will go into a Rice Competitiveness Enhancement Fund that will be used for farm machinery and equipment, as well as for financial assistance to farmers.</p><blockquote class="twitter-tweet"><p dir="ltr" lang="tl">.<a href="https://twitter.com/SenImeeMarcos?ref_src=twsrc%5Etfw">@SenImeeMarcos</a> joins farmers&#x27; rally at the Department of Finance, says she wants to support her &quot;friends&quot;<br/><br/>&quot;Lahat barkada ko andito eh. Lahat ng kabigan natin na mambubukid, mangingisda... nakikisuporta ako, may dala akong tubig... tinapay, palibhasa wala nang bigas,&quot; she said.… <a href="https://t.co/3gz8pXPSv7">pic.twitter.com/3gz8pXPSv7</a></p>— ABS-CBN News (@ABSCBNNews) <a href="https://twitter.com/ABSCBNNews/status/1706520148419785095?ref_src=twsrc%5Etfw">September 26, 2023</a></blockquote><div><script async="" src="https://platform.twitter.com/widgets.js" charSet="utf-8" type="text/javascript"></script></div><div><strong>Why lower them now?</strong></div><p>Diokno said reducing rice tariffs is also among the measures that the government is considering to tame inflation, which was at 5.3 percent in August from 4.7 percent in July.</p><p>&quot;The President has directed the economic team to implement measures that will mitigate the negative impact of the price controls on rice retailers and farmers,&quot; Diokno has said. </p><p>&quot;We need to adopt a comprehensive approach to help ensure that rice supply remains sufficient at reduced prices,&quot; he also said.</p><p>Balicasan has said that tariff reduction &quot;while world prices are rising&quot; is a potential alternative to the Sept. 5 rice cap.</p><p>&quot;The only worse off here will be government because there will be less revenue from the tariffs,&quot; he also said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/09/21/23/govt-mulling-cut-to-rice-tariffs-to-reduce-prices-neda">Govt mulling cut to rice import tariffs to reduce prices: NEDA</a></li></ul><p>Dr. Cecilio Pedro of the Federation of Filipino-Chinese Chambers of Commerce and Industry said earlier this month that cutting tariffs would help encourage rice imports and ensure supply.</p><p>&quot;Tinitingnan nila yung cost, &#x27;pag yung cost mataas, hindi sila bibili ng palay para i-supply sa market at a lower price,&quot; he said.</p><p>(They are looking at the cost — if it is high, they won&#x27;t buy palay to supply it at a lower price.)</p><p>&quot;The only way to encourage more imports is for tariff to come down so that it will be profitable for importers to sell at the price ceiling,&quot; he said.</p><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2802092" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><div><strong>Farmers fear imports will flood markets</strong></div><p>But it is the fear that imports will push out local producers that has prompted groups like SINAG to oppose the proposal.</p><p>&quot;Walang rice shortage, therefore there is no basis to reduce tariff; at lalong walang basis magpabaha ng imported rice. Lalo na&#x27;t anihan na ngayon, sino ang tunay na makikinabang sa tariff reduction?&quot; SINAG chair Rosendo So said in a statement Tuesday.</p><p>(There is no rice shortage, therefore there is no basis to reduce tariff. And there is even less basis to flood the market with imported rice. Especially since it is harvest season, who will really benefit from tariff reduction?)</p><p>So said lower tariffs could push down farmgate prices — when traders buy from farmers — but would not guarantee lower retail prices.</p><p>&quot;Nangyari na ito ng ilang beses kaya’t hindi totoo na walang epekto sa magsasaka,&quot; he said.</p><p>(This has happened before, so it&#x27;s not true that this will not affect farmers.)</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/business/09/10/23/few-takers-for-local-onions-as-government-oks-more-imports">Few takers for local onions as government OKs more imports</a></li></ul><p>He warned that the push for tariff reductions could go beyond rice imports, saying it has &quot;[become] apparent that Diokno and Balisacan are also targeting the other agriculture commodities.&quot;</p><p>Apart from SINAG, at least 25 other farmers&#x27; and industry groups — including the Kilusang Magbubukid ng Pilipinas, the Federation of Free Farmers, the National Federation of Hog Farmers Inc and Pork Producers Federation of the Philippines — signed on a statement opposing the proposal.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/09/19/23/marcos-on-p20kilo-rice-may-chance-lagi-yan">Marcos Jr. on P20/kilo rice: May chance lagi &#x27;yan</a></li></ul><p>&quot;What we need right now is to reassert our capacity to produce for our own agriculture and food needs, and to vigorously push for food self-sufficiency as we can never rely on the vagaries of the international market,&quot; SINAG said earlier this month.</p><div><strong>What can be done to ensure rice supply?</strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/5tNaB2lj2zI?enablejsapi=1" width="560"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><p>In an interview on TeleRadyo Serbisyo, Grain Retailers&#x27; Confederation of the Philippines (Grecon) president James Magbanua said rice prices were stabilizing, which could mean that the price cap might be lifted soon.</p><p>&quot;Ngayong nagha-harvest na, bumababa na ang presyo,&quot; he said. &quot;I advise, siguro, tama na... usually pag-harvest, kung ano dinidikta ng market, doon po tayo.&quot;</p><p>(Now that the harvest has started, prices are going down. I advise, I think the price cap has been there long enough. Usually, at harvest time, we should go where the market dictates.)</p><p>He added that the long-term solution to rice supply is improving the agriculture sector to increase farm yield and lower production cost.</p><p>&quot;Lahat ng kailangan ng ating mga magsasaka, ibigay natin,&quot; he said, saying farmers need machinery and better access to irrigation.</p><p>(Let us give the farmers what they need.)</p>

Agricultural groups on Tuesday reiterated their opposition to lowering tariffs, a move that economic managers said would lower rice prices.