ALEXIS JHOELLE BASE CBM321(527)

RICE TARIFFICATION LAW

Introduction

On February 14, 2019, our President Rodrigo Duterte signed an act liberalizing
rice imports, exportation, and trading, as well as lifting the quantitative rice import
restriction, among other things. The Rice Liberalization Act No. 11203 changes the
agricultural tariffication act of 1996, which placed tariffs on all agricultural imports except
rice. New law lacks safety nets for Filipino Farmers. Farmers' organizations complain
that the legislation will force them to compete with low-cost rice imports, leaving them
impoverished. Measures should be put in place to ensure that Filipino farmers are not
adversely affected by the rice tariffication law and that support systems are accessible
to them. While it has merits, stakeholders are concerned about the lack of government
regulation.

According to Tobias, Annette M. 2019 a science research specialist, some

salient issues on rice tariffication are Rice imports are cheaper than domestically
produced rice. Under a free market, the market price of rice will decline with the influx of
cheaper rice imports. Liberalizing rice imports will help, but will not solve the Philippines’
inflation problem. Dr. Emil Q. Javier a National Academy of Science and Technology
2019, stated also Instead of focusing on enhancing rice farmers' access to credit crop
insurance, the Rice Fund should focus on improving rice farmers' access to credit crop
insurance.

Thesis Statement
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The law was made for farmers and consumer so they will maintain the
productivity of the farming industry. The objective of his law should give people
especially farmer a certainty that they can benefit with that law, no less but fair. They
must aim for it for them to have results if it’s effective or not. Government must also
monitor or observer their law if it is effective or not, has great impact or not and is it
positively drives the farmer or negatively drives the farmers. The less we monitor and
take action, the less will the farmer will work hard for the Philippines.

Analysis

Two things to achieve the objectives of the law is to observer and take actions.
Through observing, you can see if the act is giving the farmer what they need and want
giving farmers an assistance and fair value for them to be treated equally. Simply take
actions if their objectives is not qualified, take actions if it’s negatively affecting the
market and especially farmers.

Background

On my introduction, I have stated some of issues that occur after applying the
rice tariffiation law. Mainly, Rice imports are less expensive than rice grown in the
United States. With the surge of cheaper rice imports, the market price will fall under a
free market. Also, with market monitoring, there will be an incidence or an industry that
suffers losses, such as the recent rice scarcity.

Moreover, Annette M. Tobias 2019 stated the negative things that rice
tariffication may bring to farmers and the market. Enabling cartels of the rice trade and
will throw poor into worsened state of hunger. So, it would really affect people especially
farmers, this will just worsen their capabilities from poor to poorer. In addition, there is
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no guarantee that the retail price will get lower in the long run because in market, it is
unpredictable and immeasurable.

Alternatives

To begin with, Qualitative restriction Limits on the amount and value of

commodities that can be imported or exported during a given time period. Governments
permits to set a restriction on the amount of rice that the Philippines can import each
year. Its purpose is to safeguard local rice growers from the negative consequences of
low-cost rice imports.

QR was rejected because of constraints that are poorly managed have a

negative impact. Influence on industry, discourages businesses from increasing
productivity. They would have earned more gains and streamlined their operations if
they had been subjected to fierce competition.

This alternatives is not possible at this time because of this Rice Tariffication Law
is running good in its long run. On the other hand, QR failed to succeed in providing
affordable rice for Filipinos in which farmers cant barely afford it while consumers pays
double to obtain it.

Propose a solution

Lowering the prices not only for consumers but also for farmers. Farmers work
day by day to have a good quality of rice for the Philippines. It would not be fair if the
rice they were harvesting is they can’t afford. Giving them a fair distribution would be a
big help for the farmers such as machineries and fair income.

The impact of mechanization for farmers will have a very good result. Because it
would increase its productivity in which farmers will just use machineries for easy and
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quality worked. With increase productivity, farmers can produce rice that is more quality
than before. Also with good income, it will boost its morale to work hard. With good
income governments will have a productive farmers. The more rice that are produced,
the more consumers will buy and the more rice we can distribute and also it would
increase their income.

Recommendations

Observation, with correct monitoring things will get easily noticed. Each day, take
some objectives observing if it is effective for consumers and farmers. As you can get
the result things will get easily because you can formulate multiple solutions for them to
be saved from poverty. Finding its loopholes will surely eradicate some of the big
problems of the inequality distribution for consumers and farmers.

Experiencing it will be a lot of help. Through experience you can gain lots of
ideas on how to promulgate with the organization. As I have conclude also, the main
thing that a government will do is to reduce the price not just for consumer but also for
farmers. Machineries will be a good help also for farmers to increase its productivity.
The more we harvest the most consumer will buy. Having a loyal and productive farmer
will get rid of the problems affecting consumers and farmers.
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References

N. (2019, August 11). Rice tariffication problems and measures to deal with them. BusinessWorld
Online. Retrieved from: https://www.bworldonline.com/rice-tariffication-problems-and-measures-to-
deal-with-them/
Tobias, A. (2019, May 23) The Philippine Rice Tariffication Law: Implications and Issues. Retrieved
from: https://ap.fftc.org.tw/article/1372
Philippine Institute for Development Studies. (2017, April 27). Quantitative Restriction on Rice
Imports: Issues and Alternatives. Think Asia. Retrieved from:
https://think-asia.org/handle/11540/6849