Blood, Sweat, and Rice R

ICE IS THE very lifeline of Philippine culture and cuisine. Growing up, we are told that we shouldn’t waste even a single grain of it as farmers earnestly plant and harvest this favorable crop. In every sense, rice truly is a staple to the nation and a food constant to millions of Filipinos. Our meals would not be complete without some form of rice on our plates throughout the day.

Filipinos are renowned for being ardent consumers of rice, with an average annual consumption per family of 4.9 kg per week. Despite that fact, farmers in the Philippines remained the poorest even though Filipino consumers were paying more for a kilogram of rice than any of their ASEAN neighbors. So, on March 5, 2019, the Rice Tariffication Law (RTL) took effect ensuring that local consumers could access cheaper rice, asserting that it will increase the profitability and competitiveness of rice growers in the Philippines.

The RTL, or Republic Act 11203, was passed in 2019 and was designed to liberalize the country’s rice industry. It removed the quantitative restrictions on rice imports, replacing them with tariffs and allowing for a greater amount of imported rice to enter the Philippines.

According to Finance Secretary Carlos Dominguez III, a former Agriculture Secretary, “This law is an opportunity to revolutionize the agriculture sector and help our farmers become more competitive in the global economy.” Although expectations are set for this relatively new law, it had contrasting implications and setbacks in the country and the rice industry. Its silver lining is that it helps protect local rice farmers from unfair competition from imported rice. The tariffs are designed to incentivize imports of lower-priced rice, which could make rice more affordable for consumers. This law intended to create a more efficient and equitable system of rice supply, pricing, and distribution.

However, the influx of cheaper imported rice has led to a decrease in demand for locally produced rice, leading to a decrease in prices for farmers. This implied that tariffs could eventually lead to higher prices for imported rice, which could cause inflationary pressures in the economy. If some of the tariffs are excessively high and make it impossible for local rice farmers to compete with imported rice, it might potentially create an unfair playing field for them.

Geronimo Lladoc, a local farmer of Ligao, remarked that while this law intended to benefit farmers in our country, they clearly struggle to compete while imported rice are favored over the local ones. “There is more disadvantage in the implementation of the law as it is so hard for us to earn profits. Also, growing and maintaining those rice fields are expensive.”

The increased competition from imported rice has put pressure on local farmers to improve the quality of their rice and cut their production costs in order to remain competitive. With this, the high cost inputs such as seeds, fertilizers, and pesticides, combined with the low prices of rice, has made it difficult for local farmers to make a profit.

The law sowed the seeds for many issues, including hunger and debt, while retail prices remained high for low-income customers. It has liberalized the antiquated system of regulating rice prices, bringing in competition and bringing down prices. The RTL’s history shows how important the role civil society plays in promoting and supporting progressive reforms outside of the traditional channels of democratic administration. ■