Farmers’ groups on Monday appealed to the government to negotiate the extension of the rice-import quota as rice farming in the country remains “dismal” and “unprofitable.”
They also called on President Duterte to thumb down the efforts of other Cabinet members to privatize the National Food Authority (NFA).
“In his Executive Order [EO] 1, President Duterte vowed to reduce poverty. However, his lieutenants are eyeing the opposite direction, opting to remove state support to the rice industry that has 4 million farmers dependent on it for their livelihood,” Jaime Tadeo, president of Paragos Pilipinas, said in a statement.
“Instead of lifting the quantitative restriction [QR] on rice, this administration should strengthen its support to help the local industry gain the competitive advantage that the past administrations failed to do,” Tadeo added.
Mr. Duterte’s economic team is partial to lifting the QR on rice, citing the need to reduce the retail price of the staple to make it more affordable to the poor.
But opening up the rice market at this time is ill-advised because palay farmers remain unable to compete with their counterparts in the Asean.
“We are alarmed that despite the extensive funding provided for rice, we remain poor because the cost of production remains very high, compared to those produced in other Southeast Asian countries,” said Trinidad Domingo, honorary president of Pambansang Koalisyon ng mga Kababaihan sa Kanayunan.
To help farmers, the Pambansang Kaisahan ng mga Magbubukid sa Pilipinas (PKMP) said the NFA should continue to receive government funds so it could buy unmilled rice from farmers and stabilize the farm gate price of the staple. PKMP’s Ed Mora also urged the government to investigate the reported losses suffered by the NFA in the past.
The group noted that NFA loans increased in 2008, 2009 and 2010, when rice importation was at its height. Former President Benigno S. Aquino III exposed the staggering debt of the agency that reached P180 billion.
“The past administration attributed these NFA losses to over importation, overpricing and over borrowing from banks—a grave concern that easily merits a formal executive of legislative inquiry,” Mora said.
Farmers’ groups proposed the removal of representatives of banks in the NFA Council and to retain only one representative of the Development Budget Coordination Committee.