MANILA, Philippines – It will be like domino tiles falling one after the other.

While the rice

tarrification bill will directly affect the rice industry, other businesses which make use of
byproducts from rice will inevitably also feel its consequences.

The rice tariffication bill, or Senate Bill 1998, which will allow uninhibited rice importation, is
due to be signed into law by President Rodrigo Duterte on Friday, February 15. Only a
presidential veto can stop the bill from becoming law. (READ: Duterte open to changes in rice
tariffication bill)

By removing the quantitative restrictions, imported rice coming from Southeast Asian countries
will be slapped with a 35% tariff, while imported rice coming from other countries will be
imposed a higher tariff rate. (READ: Higher inflation in 2019 if rice tariffication not passed –
Diokno)

While this will result in imported rice becoming more expensive, the flood of imported grains
will still threaten local produce.

Orly Manuntag, spokesperson of the Confederation of Grains Retailers Association of the

Philippines Incorporated (Grecon), told Rappler that there will undoubtedly be a spillover effect
on other sectors if the rice tariffication bill becomes law without amendments.

Grecon, along with other representatives of various sectors in the industry, got an audience with
Duterte and other economic managers last week, and was able to air grievances about the bill.

While it has its good points, the lack of government regulation worries stakeholders.

Aside from the obvious displacement of rice farmers, National Food Authority (NFA)
employees, and some 90,000 accredited NFA rice retailers nationwide, Manuntag said the
deregulation of rice imports goes beyond the industry.

Here are the businesses and industries that will be affected by liberalized rice importation:

Millers
There are around 6,600 registered rice millers all over the country, employing 55,000 workers.
Industry stakeholders, in a position paper, said that a complete milling facility costs from P30
million to P50 million. This would place the value of the whole industry itself at P200 billion to
P300 billion.

"This whopping amount is primarily sourced from commercial bank borrowings with
corresponding interest charges," the position paper read.

However, Manuntag noted that taking out these loans will be meaningless if the mills will not be
used at all.

"Where will the millers bring their facilities if they can't buy unhusked rice from the farmers
because these farmers refused to plant rice anymore?" he said in Filipino.