President may allow rice imports at lower tariff rate under new agri law

Republic Act No. 120278 or the Amendments to Agricultural Tariffication Act empowers the President to authorize rice imports at a lower applied tariff rate during any imminent or forecasted shortage or any situation requiring government intervention. 

Section 9 of the new law, stating the Power of the President, indicated that in cases of extraordinary drops in local rice prices, the President may suspend rice imports for a limited time and/or volume until the rice supply and prices stabilize.

''Such order shall take effect immediately and can only be issued when Congress is not in session,'' the law read.

The new law extends the life of the Rice Competitiveness Enhancement Fund (RCEF) until 2031. The fund is sourced from the tariffs collected from rice importation.

Further, a rise in the annual allocation to the RCEF will be instituted, from the current P10 billion to P30 billion until 2031. 

Marcos said that through the RCEF, the country was able to invest in high-quality seeds, mechanization, and training of local farmers, a move that will guarantee that they are equipped with the right skills and tools to increase productivity.

''With the expiration of the original six-year plan for RCEF fast approaching, it became clear that we needed to extend and strengthen the program. And this is where this law comes in, extending the program to 2031, and significantly increasing its funding from the original P10 billion to P30 billion annually,'' Marcos said in his speech during the ceremonial signing. 

The new law will also strengthen the Department of Agriculture’s regulatory functions by creating and maintaining a database to monitor the country’s rice reserves.—LDF, GMA Integrated News