Senator Aquilino “Koko” Pimentel III. INQUIRER/EDWIN BACASMAS
Senator Aquilino “Koko” Pimentel III on Thursday maintained that passing the rice tariffication bill was a “long term solution” to the country’s rice supply woes and rising inflation.
In a statement, Pimentel stressed that the rice tariffication bill would prevent rice supply fluctuations and manipulation by rice traders and smugglers taking advantage of the situation.
“With the private sector involved in rice importation, businessmen will bring in rice when the market requires it, and will not when there is an abundant supply in the market; they will try to find the best prices so they can sell their product at competitive rates while ensuring profits for themselves,” he said.
Pimentel added: “At the same time, the tariffs collected from importing rice will go directly to our farmers so we can help them produce rice efficiently and cheaply, thereby improving their capacity to compete and be profitable. This is a win-win measure for both farmer and consumer.”
He made the remarks amid the country’s rice supply problems and over nine-year high inflation of 6.4 percent in August.
Pimentel is the chairperson of the Senate trade and commerce committee.
To recall, President Rodrigo Duterte in his State of the Nation Address last July said rice tariffication would be among this administration’s long-term solutions to lower inflation.
He also asked Congress to prioritize the rice tariffication bill, having certified it as urgent.
Last Wednesday, Bangko Sentral ng Pilipinas governor Nestor Espenilla Jr. said rice supply shortage that led to increasing prices of rice was one of the culprits behind high inflation.
Pimentel lamented that the country currently depends on “the judgment of several government officials who are tasked to determine how much rice we should import, and when we should import it.”
He was referring to the NFA Council, which is composed of the NFA administrator and representatives from government agencies and institutions.
“The mandate appears simple enough, but so many factors prevent them from fulfilling their mandate properly. When they have disagreements and cannot get along, crucial policy decisions are delayed, and when this happens, it is consumers who literally pay the price––who literally pay higher prices for an important food staple like rice,” Pimentel noted.
He said NFA Council’s belated decision to import rice for certain areas in Mindanao and its failure to increase the buying price of palay are examples of “policy paralysis.” /kga