Agri dep’t steering farmers to plant high-end rice

THE Department of Agriculture (DA) said it is now encouraging farmers to plant special rice to fill a developing niche for “good eating quality” and “aromatic” varieties whose prices are not controlled, in the face of more liberal imports of rice intended for low-cost markets.
“The strategy now is to encourage farmers to plant special rice RC 160, RC 218, RC 300, of good eating quality and even aromatic.” Mr. Piñol said in a briefing in Quezon City.
“It is a lot higher [in price] than the ordinary palay bought now at P14 to P15 per kilo,” according to Mr. Piñol, noting that RC 160 rice can command P22 to P25 per kilo at farmgate level.
The Rice Tariffication Law will come into force in early March, and will allow private entities to import the staple more freely from more efficient producers outside the Philippines. Southeast Asian rice will be charged tariffs of 35% according to regional trade agreements. The measure is expected to make rice affordable for the poor, control inflation, and generate revenue from the tariffs. However, the industry has also warned that domestic farmers might be forced out of the market by cheap imports.
Its enactment has led the DA to abandon its long-held goal of 100% rice self-sufficiency and set a target of around 93%, which is the current share of domestic rice as against imports.
“We may be contented with just the 93% that we have right now. The influx of imported rice may affect the prices of rice in the market and further dampen the buying price of palay,” Mr. Piñol said.
Mr. Piñol added that the DA is hoping to develop a market for organic rice which can be exported.
“We are going to open a new market and this could be the organic rice market… which could be our outlet for excess production,” Mr. Piñol said.
The new law also calls for the establishment of the Rice Competitiveness Enhancement Fund (RCEF) which will be endowed with P10 billion a year for six years to improve mechanization, access to seed and access to financing in the industry.
The industry has raised fears that corrupt politicians might gain control of the fund, while Mr. Piñol suggested that the funding might not suffice for farmes’ seed needs.
“We agreed that greater support will be given to Filipino rice farmers. This will come in the form of rice seeds and fertilizers as ordered by the President. When we computed the amount of money allocated for rice seeds, we discovered that it will not be enough to cover the rice farmers,” Mr. Piñol said.
He also lobbied for RCEP funding to be available before the next planting.
“We need to provide interventions to the farmers in the next planting season but I think we won’t be able to do it because we have no money yet,” Mr. Piñol said.
The rice tariffication law is scheduled to take effect by March 5 and the National Food Authority (NFA), which will lose its importing role under the law, is set to finalize the Implementing Rules and Regulations (IRR) within 30 days.
According to Mr. Piñol, consultations will be held with stakeholders starting Feb 26 for the Northern Luzon cluster covering the Cordillera Administrative Region (CAR) and Regions 1, 2 and 3.
Discussions among stakeholders in Southern Luzon covering Region 4A, Region 4B, Region 5, are scheduled for Feb. 28, while consultations with stakeholders in the Visayas are set for March 1.
“On March 2, the policy planning office of the DA will work to complete a collated report on the results of the consultation and DA will submit and present this during the NFA Council meeting on March 5,” Mr. Piñol said. — Reicelene Joy N. Ignacio