Press Statement of Deputy Speaker and Batangas Rep. Ralph G. Recto

September 4, 2023

Dahil sa EO 39, agad bumulusok ang farmgate prices ng palay mula P23 to P19 per kilo. 

Kung apektado ang kalahati ng forecast palay harvest sa taong ito – mga 10 million metric tons – lugi ang mga magsasaka ng P40 billion. Ngayon pa naman ay harvest season.

How can we compensate for their losses? 

Maaring kunin sa P38.56 billion na rice import tariff collections from January 1, 2022 to August 26, 2023.

Sa taong ito, P80 million ang arawang koleksyon ng Bureau of Customs mula sa 35 percent import duty sa bigas.

At present, tariff collections are pooled under the Rice Competitiveness Enhancement Fund (RCEF) to be returned to farmers as indemnity for market losses. 

These plowbacks are mostly in the form of equipment and inputs purchased by the DA.

The formula of RCEF plowbacks are legislated under Republic Act 11203, the Rice Tariffication Law : 50 percent for equipment; 30 percent for seeds; 10 percent for credit assistance; 10 percent for extension.

Hindi kasama ang ala-Conditional Cash Transfer, or direct payouts to farmers.

Dadaan pa sa DA, na parang middle man.

I have always maintained that instead of straitjacketed assistance, we should trust the farmers with the decision on how best to spend the import dividends given to them as indemnity.

Dahil wala sa menu ang cash transfer, government is denied the flexibility to undertake rapid-response relief that will ease the plight of farmers during exigencies.

Kung sino pa ang mahirap at walang makain, sila pa ang magbebenta ng pagkain sa itinakdang halaga. 

Dalawa ang mungkahi ko na pwedeng gawan agad ng aksyon ng lehislatura at ng Malacanang bilang tugon sa napipintong krisis sa pambansang pagkain:

Amyendahan ang RCEF menu ( Section 13 of the RTL) upang ipahintulot ang direct cash assistance. Straight to their pockets, straight to their stomachs.

Yung perang katas ng RCEF ipamigay sa lahat ng rice farmers at hindi lang doon sa nagtratrabaho sa two hectares at pababa , per RA 11598.

At ang cash component ay hindi lang kukunin doon sa excess ng P10 billion ng tariff collections.

Second, because Congress will adjourn on September 29, for the President to pull the trigger on Section 7 of the Rice Tariffication Law, and reduce import duty rates on rice.

Ayon sa Sec. 7: 

(a) The President may increase, reduce, revise, or adjust existing rates of import duty up to the bound rate committed by the Philippines under the WTO Agreement on Agriculture and under the ATIGA, including any necessary change in classification applicable to the importation of rice: Provided, That the power herein delegated to the President shall only be exercised when Congress is not in session: Provided, further, That any order issued by the President adjusting the applied tariff rates shall take effect fifteen (15) days after publication;

“(b) In the event of any imminent or forecasted shortage, or such other situation requiring government intervention, the President is empowered for a limited period and/or a specified volume, to allow the importation at a lower applied tariff rate to address the situation. Such order shall take effect immediately and can only be issued when Congress is not in session.”

So this is the urgent division of labor.

Congress to amend the RTL to authorize direct cash payments to farmers, using past RCEF collections. This will benefit the rice producing poor.

And for the President to TEMPORARILY reduce import duties to benefit the rice consuming poor. Not forever, but for a limited period that will not hurt any stakeholder.