Senate Reviews Rice Tariffication Law Reforms

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The Senate on Wednesday opened discussions on proposed amendments to the Rice Tariffication Law (RTL), with senators stressing the need for stronger farmer support and better use of tariff revenues.

Senate Committee on Agriculture chair Francis Pangilinan said that six years after the RTL’s passage, it has fallen short of its goals of reducing rice prices and strengthening local farmers.

“The twin objectives of the RTL have not been met. Mahal pa rin ang bigas sa palengke pero mura pa rin ang bilihan ng palay sa bukid (Rice remains expensive in the market, but palay prices in farms remain low),” Pangilinan said at the opening of the committee inquiry.

The hearing also examined the “Seven Pillars of Reform” blueprint, which consists of restoring calibrated state capacity, integrating the Rice Competitiveness Enhancement Fund and the National Rice Program, rebuilding an extension support system, balancing consumer welfare and farmer share, sustaining domestic production, modernizing the National Food Authority (NFA), and incentivizing private sector participation.

Charts presented by the Department of Agriculture showed that rice imports surged from 1.17 million metric tons (MT) in 2017 to a record 4.77 million MT in 2024, pushing down farmgate prices and placing 3.4 million rice farmers and workers at economic risk.

Rice self-sufficiency dropped from 93 percent in 2017 to 77 percent by 2022.

“The weakened state role, compounded by import surges, has exposed the PHP554 billion rice value chain to global volatility,” the presentation noted.

Senator Raffy Tulfo underscored the importance of the timely delivery of assistance, such as seed and fertilizer subsidies and post-harvest facilities.

“Pagdating po sa pagsasaka, time is of the essence. Ang isang taong pinaghirapan at pinaghandaan ng ating mga magsasaka ay madaling mawala kung hindi nakakarating ang tulong ng maaga (In farming, time is of the essence. A year’s worth of preparation by farmers can be lost if support does not arrive on time),” he said.

Lawmakers also reviewed data showing farmers’ share of the consumer peso, which fell from 43 percent before RTL to 39 percent in 2024, while retailers’ share jumped from 9 percent to 12 percent.

The committee is deliberating Senate Bill 284 or the proposed Rice Industry and Consumer Empowerment (RICE) Act and other resolutions that seek to realign tariff policy, strengthen the safety nets for farmers, and revisit the role of the NFA.

The inquiry also looked into the impact of Executive Order 62, which slashed rice import tariffs from 35 percent to 15 percent last year, further depressing farmgate prices.

Reforms proposed by the Senate policy blueprint include hiring 15,000 to 20,000 extension workers to support rice farmers, building resilience across rice and corn production, modernizing NFA warehouses, and extending fiscal and non-fiscal incentives to private value chain actors.

These reforms are seen to safeguard the livelihood of 3.4 million farmers, secure the rice value chain, and ensure affordable, stable rice for every Filipino family. (PNA)