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Review, amend RTL instead of implementing rice price cap– farmers

Mon Lazaro January 10, 2024 at 03:28 PM

SAN MIGUEL, Bulacan– Farmers in Central Luzon, considered as the rice granary of the country, are calling for the abolition/amendment of the Rice Tariffication Law (RTL).

Simeon Sioson, chairperson of 4SM Muntipurpose Farmers Cooperative and an active farmer leader in Central Luzon based in this town, noted that ever since the implementation of the RTL, rice prices have spiked up.

He pointed out that before the implementation of the RTL, regular milled rice were being sold at P27 per kilo and well milled rice at P32 per kilo in National Food Authority (NFA) accredited retail stores.

Proponents of RTL claimed that with its implementation, rice prices in the local market could still go lower compared to the NFA rice selling price at that time, Sioson said.

Years after the implementation of RTL, rice prices in the local market have almost doubled to the disadvantage of the public consumers and perceived big profits for rice smugglers and hoarders, Sioson lamented.

It is about time that lawmakers review, or much better repeal the said law, that placed too much burden on rice consumers who have to deal with the rising cost of the staple grain, Sioson stressed.

On the other hand, Raul Montemayor, national chairman of the Federation of Free Farmers, has agreed to have the provisions of RTL reviewed.

Lawmakers should return to the government measures for it to engage in “direct importation, direct sale of subsidized rice through dedicated outlets, etc., “during times like what is happening to the country’s rice situation like what is happening now, Montemayor pointed out.

Montemayor said that he had heard reports about the possibility that the government will be coming out with a suggested retail price (SRP) for rice prices may take effect in the meantime but not a rice price cap.

But added, “Pero baka humantong din sa price cap kung hindi mapigil ang pagtaas ng presyo ng bigas.”

POSSIBLE OUTCOME OF SRP ON RICE OR RICE PRICE CAP

Montemayor clarified that there are different types of rice classes and asked which of these will be subjected to SRPs?

“Mahirap ma-implement. Ang pagpapataw ng SRP ay senyales na wala nang magawa ang gobyerno para pababain ang presyo ng bigas,” Montemayor said.

In coming out with a price cap, Montemayor noted that it should be realistic and based on how local “palay are being procured by traders plus milling and other costs plus reasonable profit margins.”

He explained that if rice retailers will suffer loses in selling their commodities due to the price cap, “baka lalong mawala ang bigas sa palengke, o magkakaroon ng mislabeling para makaiwas sa cap, o mapipilitan na naman ang gobyerno na magbigay ng ayuda.”

Montemayor expects that farmers may not immediately feel the effects of rice price cap because most of the palay are now in the hands of traders, “baka bawian naman sila sa susunod na anihan sa Marso.”

Photo: Mon Lazaro

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