Press Release
August 28, 2019

HONTIVEROS PUSHES FOR FASTER SUBSIDIES FOR RICE FARMERS, NFA TO BUY LOCAL RICE

"Mabilis ang negatibong epekto ng pagpasok ng murang commercial rice sa ating mga magsasaka. Dapat lamang na mabilis din at sapat ang tulong at subsidyo ng pamahalaan para sa kanila."

This was the statement of Akbayan Senator Risa Hontiveros today as she pushed for faster and additional subsidies for rice farmers to help them mitigate the negative effects of the country's new tarrification law.

In a Senate committee hearing on Wednesday inquiring on the implementation of the Rice Tariffication Law, or Republic Act No. 11203, Hontiveros said while the measure brings cheaper commercial rice during the lean months, it also poses risk to rice farmers as it depresses the price of palay.

Hontiveros said that according to her office's computations, around 42 thousand farming households will fall into poverty if faster subsidies are not provided for by the government. The average loss of the poor and non-poor rice farming households are P8.7 thousand and P19.7 thousand respectively, while the average gain is P5.3 thousand and P3.9 thousand, respectively. In short, the savings from cheaper rice consumed by rice farmers could not offset the loss to the lower price of the palay they sell.

Hontiveros said that the Rice Tariffication Law provides a Rice Competitiveness Enhancement Fund (RCEF) which is designed to provide input subsidies to minimize production cost and increase yield. The Senator, however, said that the RCEF would have to go through several years of implementation before improved competitiveness could be achieved. In contrast, the income shock is immediate. She said that at a rate of P5,500 per hectare per planting capped at two hectares, decoupled payment will cost the government P10.6 billion annually.

"Tinutulak ko ang mas mabilis na subsidyo para sa ating magpapalay para tugunan ang pangamba ng pagkalugi sa kanilang kita at lalong pagkasadlak sa kahirapan resulta ng pagbaba ng presyo ng lokal na palay dahil sa pagpasok ng commercial rice," Hontiveros said.

Dapat tanggalin ang restriction sa paggamit ng taripa na kailangan munang lumagpas sa P10 B bago mailaan para sa direct financial assistance at iba pang ayuda tulad ng crop diversification. Halimbawa, inaasahan na hindi bababa sa P13.5 billion ang magiging tax sa imported na bigas ngayong 2019. Itutulak ko na i-advance na ito at huwag nang hintayin ang 2020. Walang kakulangan ng pera, napakalaki naman ng underspending ng ibat-ibang sangay ng gubyerno," Hontiveros explained.

"NFA urged to buy local rice"

Hontiveros also called on the National Food Authority (NFA) to buy the local farmers' rice as part of their buffer stock at a relatively competitive price while they wait for the needed subsidies to be distributed. "Hinihikayat ko ang NFA na bilhin ang palay ng ating mga lokal na magsasaka sa darating na anihan sa presyong hindi palugi, habang hinihintay ang paparating na mga programa ng RCEF at mabigyan ng sapat na tulong pinansyal ang mga magsasaka," Hontiveros ended.

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