Rice tariffication measure is sound policy

THE country’s economic managers renewed their call to Congress this week to pass House Bill 4904, or the rice tariffication bill, to amend the Agricultural Tariffication Act of 1996 by removing the quantitative restrictions (QR) on rice imports that law imposed. The proposed bill represents a long overdue move to a sound policy on rice supply, and its passage should be prioritized by the legislature.

Under the QR policy, the government through the National Food Authority (NFA), which has a statutory monopoly on rice importation, restricts the volume of rice that can be imported to the Philippines under a 35-percent tariff. Shipments in excess of the restricted quantity can then be charged a much higher tariff rate. It is a protectionist measure aimed at shielding local rice producers from having to compete with cheaper imports, and when originally implemented, was simply intended to give the rice sector time to improve its productivity. QR was originally set to expire in 2005, or after 10 years, but was extended in 2004 up to 2012, and then extended again in 2014 until June 30 of last year. The government originally considered seeking another extension of QR up to 2019, but has rejected that idea in favor of pushing for the tariffication bill.