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Where's P4 billion for farmers? Villar grills DBM,
DA
Senator Cynthia Villar wants the Department of
Agriculture to account for how it used the funds
that the Department of Budget and
Management released in 2018
Ralf Rivas
Published 10:15 PM, August 28, 2019
Updated 8:01 AM, August 29, 2019
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MANILA - The signing of the Rice Tariffication
Law has made things worse for the country’s
farmers, one of the poorest sectors, Sen. Francis
Pangilinan said Tuesday.
Pangilinan said the law, signed by President Rodrigo
Duterte in February this year to address rice supply
shortage and soaring inflation, is slowly killing the
local farming industry after imported rice flooded
the market.
“Pagkaraang ipatupad ang unrestricted rice
importation, maraming rice farmers ang
nagsusumbong sa atin sa bunga nitong pasakit,”
Pangilinan, who served as former President Benigno
Aquino III's Presidential Assistant for Food Security
and Agricultural Modernization, said in a privilege
speech.
(After the unrestricted rice importation started, many
farmers have lamented that they are suffering.)
Pangilinan said July farm-gate prices of palay
(unhusked rice) was at P17.78 per kilogram,
according to the Philippine Statistics Authority or
P14.1 in 11 provinces, according to the Department
of Agriculture.
These are between 17 percent and 34 percent lower
than 2018 prices, he noted.
He said since the country produces about 20 billion
kilograms of palay a year, farmers have lost as much
as P60 billion since last year.
“If we talk about one farmer who averages 4,000
kilos of palay per harvest, he loses 4,000 pesos for
every peso drop in palay prices in one season,”
Pangilinan said.
Pangilinan said the P10 billion Rice
Competitiveness Enhancement Fund (RCEF)
provided by the law is not enough.
“Rice farmers all over the country have made the
same conclusion: At this point, unrestricted rice
imports without the immediate support for the rice
farmers is killing them and the industry,” he said.
Rice millers have also opted to just buy lower-priced
imported rice instead of sourcing palay from local
farmers, he said.
This has resulted in a shortage of darak (rice bran)
which is used by poultry and hog raisers as feeds.
This threatens to push the prices of chicken and pork
products up, Pangilinan warned.
And since imported rice have flooded the market,
there is now little incentive for Filipino farmers to
continue with their work.
“Nababalewala ang pagod ng Pilipinong magsasaka.
Ang nangyayari, binubuhay natin ang mga
magsasaka ng ibang bansa na tumatanggap ng
malaking tulong sa gobyerno nila, habang
ginugutom at namamatay ang kabuhayan ng ating
mga magsasaka,” he said.
(The efforts of our farmers are put to waste. What
happens is we end up supporting farmers from other
countries while ours go hungry and without
livelihood.)
Citing PSA data, Pangilinan said retail rice prices
inched down by P1.83, lower than the envisioned
price cut of P7 to P10.
HELP FARMERS ‘NOW’
Pangilinan said time is of the essence for the
government since the wet harvest season is set to
begin next month.
“I have to press on the urgency of the situation. The
main harvest will start in September. If nothing is
done, we are told, the fear is palay prices will
plummet to 7 pesos per kilo,” he said.
“This can create social and political problems. We
are proposing solutions because criticisms are not
going to work and will not help our farmers.”
Pangilinan suggested the use of agriculture special
safeguards under Republic Act 8800 that can be
triggered by a volume or price threshold of imports.
He said an anti-dumping duty can also be imposed if
the export price of a commodity is less than its
normal value in the exporting country and is causing
or threatening to cause injury to a domestic industry.
“It is a little harder to avail of these remedies, but the
remedies are much larger and more effective that
what the special safeguard duty can offer. The
suggestion could be for the DA to start looking into
these options,” he said.
Pangilinan also recommended that farmers be given
direct cash assistance which can be sourced from the
tariff collections.
He said the provision in the rice tariffication law
allowing the sourcing of cash assistance from the
excess of the P10 billion tariff collection should be
revisited.
He suggested that the P10 billion RCEF, which is
unprogrammed in the 2019 budget, be given directly
to rice farmers together with the other P10 billion
tariff already collected by the government, making
available a total of P20 billion for immediate cash
assistance to rice farmers.
He added the Department of Trade and Industry
must also go after price manipulators, while the
Philippine Competition Commission should
investigate rice importers for possible exploitative
acts.
The DA and the Agricultural Credit Policy Council
should also expedite the grant of interest-free loans
up to P25,000 to farmers under the Survival and
Recovery Loan (SURE) Assistance.
Lastly, he also called for the granting of emergency
employment for distressed farmers.
Pangilinan said the suffering of the country’s
farmers must end, as the Filipino people would
eventually reap the consequences of inaction over
their plight.
“We cannot have our food producers going hungry.
We cannot hope to be food secure as a nation if we
are not farmer secure as a people,” he said.
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tariffication farmers rice palay harvest