January 22, 2025

Emmanuel "Manny" F. Piñol

Official Website

Maawa kayo sa Pilipino, Amend The RTL Now!

(Open Letter To Sen. Cynthia Villar Chairman, Committee on Agriculture & Senators Of The Republic)
By now, there is no longer an iota of doubt that the Rice Tariffication Law, a brainchild of the Economic Managers under the previous administration headed by Finance Secretary Carlos Dominguez, has failed to deliver on its promises of lower prices of rice in the market and improved productivity for Filipino farmers.
While you were the principal author of the RTL, people should know that the Senate version of the RTL was submitted to you by the Economic Team for sponsorship to supplant the House version which was the product of a nationwide consultation supported by Rice Industry Stakeholders.
There is a need to amend RTL based on the following flaws:
1. Promised reduction of price of rice by P7 per kilo did not happen because without government regulatory supervision, the importers brought in the more expensive Premium Rice (5% Broken) instead of the cheaper 25% Broken and 15% Broken;
2. Surrendering Government Regulatory and Supervisory Powers to the private sector under Dominguez brainless “Free Market” doctrine virtually delivered the rice industry to the Cartel of importers and traders who now control the supply and prices. Without NFA regulatory and supervisory functions over rice importation, technical smuggling was prevalent with importers declaring Premium Rice as 25% Broken to avail of lower tariff;
3. Flooding the local market with imported rice which admittedly was cheaper before the India Export Embargo and the Climatic Aberrations which affected rice production worldwide, discouraged local farmers thus reducing local productivity increasing the country’s dependence on imported rice from 4.95% in 2017 to 30% now;
4. Heavy dependence on imported rice has tragic consequences, as I had warned before, because the moment the rice exporting countries reduce their export volumes or ban exports altogether, the Philippines will have a difficulty in sourcing rice for our people and this is happening right now after India, the biggest rice exporter accounting for 40% of the world supply, banned exports;
5. The RTL itself is flawed even in the allocation of the P10-B tariff collected yearly where P5-B goes to equipment procurement, P3-B for Inbred Rice Seeds, P1-B for loans and P1-B for training farmers, many of whom were “trained” in your farm schools. The P5-B equipment acquisition fund should focus more on non-traditional irrigation systems (Solar, Wind, Ram Pumps) and dryers. The other P5-B for Seeds, Loans and Training should be reviewed as it is simply being wasted.
The Filipino consumers, especially the wage earners, are suffering now as rice prices had soared to over P50 per kilo.
While the remaining Filipino rice farmers are enjoying very high farm gate prices now, nobody could tell what is going to happen that moment India resumes its export of rice.
One thing is certain, the RTL has destroyed the country’s rice industry and there is a need for government to shift from the Importation Mindset to the Local Production Initiative.
It is time to admit that while the intentions of the RTL may have been noble, the results are simply disastrous and government, if it truly cares for the people, should amend it.
There is nothing wrong in admitting that you were wrong but it is a mortal sin not to correct a measure which is wrong and hurting the Filipino people.
Amending and correcting the RTL would be your greatest legacy as Chairman of the Committee on Agriculture whose term ends in 2025.
#ItsHumanToBeWrong!
#ItsHeartlessNotToCorrectAWrong!