The measure that would allow the disbursement of excess tariff collections from imported rice as cash assistance to farmers has reached the Senate plenary.
Senator Cynthia Villar on Wednesday sponsored Senate Bill No. 1927, which seeks to authorize the Department of Agriculture (DA) to use the annual revenues in excess of P10 billion under the Rice Tariffication Act for direct cash assistance to rice farmers owning one hectare and below until 2024.
In her speech during the chamber’s hybrid session, Villar underscored the urgency to aid small farmers after the damage caused by recent typhoons, while they were still reeling from the effects of the liberalization of rice importation.
“Now more than ever, there is a need to exert all efforts to help our farmers recover. And considering the areas hit-hardest are agricultural and are mostly into rice farming, the Committee on Food, Agriculture and Agrarian Reform thru Senate Bill No. 1927, I am seeking approval that the excess of the P10-billion collection from the tariff on imported rice be used as cash assistance,” Villar, chairwoman of the said committee, told her colleagues.
Citing a report from the Bureau of Customs, Villar said there is an excess of about P5 billion in the rice tariffs collected in 2019. As of September this year, there is an excess of P3 billion, she added.
She said that under the Rice Tariffication Law, a cash assistance of P5,000 can benefit to about one million rice farmers, while a cash assistance of P10,000 can benefit around 500,000.
“The Filipino farmers are among the most hardworking citizens in our country. Unfortunately, Filipino farmers are also among the poorest. Most farmers are unable to afford the food they provide,” Villar said.
Senators Francis Pangilinan, Joel Villanueva, Imee Marcos, Risa Hontiveros, Ramon Revilla Jr., Lito Lapid and Senate President Pro Tempore Recto expressed their support for the bill.
Pangilinan said the measure will also be consistent with the recommendation of government think tank Philippine Institute of Development Studies that direct cash assistance would benefits farmers more.
The Rice Tariffication Act (Republic Act No. 11203), which replaced the quota system on rice importation with tariffs since 2019, guaranteed a P10-billion funding for the Rice Competitive Enhancement Fund (RCEF) until 2024, to assist rice farmers negatively affected by the increased inflow of cheaper rice imports so they could compete.
The law also provides that tariff collections in excess of P10 billion may be allocated to other programs on rice, including financial assistance to small rice farmers, during its first six years of implementation.
Villar said through the SB No. 1927, the government will be mandated to just distribute the cash aid to rice farmers.
Senate Majority Leader Juan Miguel Zubiri vowed to schedule the bill for plenary discussion immediately after they have passed the proposed 2021 national budget and the CREATE Bill.
Senators endorse giving excess rice tariff collections to farmers
