Legislative Laws

Introduction to Agriculture

  • Instructor: Aurora P. Waing

  • Department of Soil Science, College of Agriculture, Central Luzon State University

  • ISO 9001:2015 Certified

Legislative Laws

  • Rice Tariffication Law

  • AFMA (Agricultural Fisheries Modernization Act) of 1997

  • Organic Agriculture Act of 2010

Rice Tariffication Law

  • Author: Senator Cynthia Villar

  • Signed: February 14, 2019

  • Amended the Agricultural Tariffication Act of 1996 (RA 8178)

  • Replaced quantitative restrictions on rice importation with a tariff system

Differences between QRs and Tariffs

  • QRs: Allowable quantity of imported goods

  • Tariffs: Taxes on imported goods

  • Both aim to protect local industry from competition

Reasons for Shifting to Tariff System

  • Reduces price spikes by relying on market decisions for rice importation

  • Generates governmental revenue for development projects

  • Commitment to WTO to replace QRs with tariffs

Minimum Access Volume (MAV)

  • Definition: Volume of specific agricultural commodities imported at lower tariffs as per WTO commitments

  • Current MAV for rice: 350,000 metric tons (down from 805,200mt)

Timeline for Reform

  • 1995: Philippines joins WTO with Special Treatment for rice, retains QR for 10 years

  • 1996: QRs converted to tariffs with passage of RA 8178 (except for rice)

  • 2017: Waiver lapses, pressure to fulfill WTO obligation

  • 2019: Passage of RA 11203, QRs on rice shifted to tariffs

Key Components of RA 11203

  • Allows private sector rice importing under tariffs

  • Removes import licensing functions of NFA (National Food Authority)

  • Establishes Rice Competitiveness Enhancement Fund (RCEF) to support farmers

Budget Allocation for RCEF

  • 50% for farm machinery and equipment

  • 30% for rice seed development

  • 10% expanded credit assistance

  • 10% rice extension services

NFA's Role Under RA 11203

  • Maintain emergency buffer stock sourced from local farmers

  • Optimal inventory for 15-30 days of national consumption (480,000-960,000mt)

Issues with Previous System

  • High rice prices compared to neighboring countries

  • Elevated inflation directly linked to rice prices

  • Lower real income for small farmers

  • Reduced employment opportunities due to high labor costs

  • Significant government debt due to NFA subsidies

Benefits of Rice Tariffication

  • Consumers: Lower rice prices benefiting over 100 million Filipinos

  • Farmers: Access to affordable rice and government support for productivity

  • Taxpayers: Reduction of NFA-related debts

  • Workers: Increased real income as manufacturing becomes competitive

  • Children: Better nutrition due to affordable staple food availability

  • Poor households: Improved welfare through lower rice costs