Agri groups demand Balisacan resignation

NO LIFELINE Agricultural groups leaders explain why they feel Socioeconomic Planning Secretary Arsenio Balisacan has failed the country’s farmers and fisherfolk. —Russel Loreto

MANILA, Philippines — Seventeen agriculture groups set aside their differences and “joined forces” on Sunday to demand the resignation of Socioeconomic Planning Secretary Arsenio Balisacan for failing to sufficiently grow the agricultural sector.

“[Balisacan] has never sided with the interests of the farmers and consumers,” Jayson Cainglet, executive director of Samahang Industriya ng Agrikultura (Sinag) told the Inquirer. “He is embarrassing the President.”

The groups took particular issue with Balisacan’s recent announcement of tariff reductions on agricultural products, which had already been battering farmers since the Duterte administration.

The groups claimed that projected revenue losses annually on rice will stand at around P40 billion. If pork, chicken, mechanically deboned meat, and corn are included, they say losses will range from P60 billion to P65 billion.

READ: Gov’t slashes tariff on rice imports to help cut local prices

In a press statement, Sinag chair Rosendo So said the tariff reduction plan was misguided.

“If the solution to lower rice prices is to subsidize, why are we helping importers and Vietnamese farmers instead? There is no need to reduce tariffs if the solution is a subsidy,” he said.

READ: Rice tariff cuts could boost Philippine GDP growth, analyst says

The groups noted that Balisacan already said, upon assuming office, that the agricultural sector was “already in crisis,” but he did nothing.

“[The National Economic and Development Authority] is giving the President false hopes. That’s why we feel that before the President thinks of issuing an executive order, he should listen to us first,” said Leonardo Montemayor, chair of the Federation of Free Farmers (FFF).

Contrary views

Providing computations and their own studies, the groups disputed the P29 per kilo rice price claim and outlined major revenue losses, declining farmer incomes, and a lack of support for the agriculture sector.

“At retail level, our estimate is that with a 15 percent tariff, rice prices will still be P50 and above given the other factors I mentioned,” Montemayor said. “So where is the claimed price reduction from this 15 percent tariff? It will not happen.”

Aside from that, the groups said that a proposed reduction in rice tariffs from 35 percent to 15 percent could drastically impact the agriculture sector.

Tariff collections are projected to plummet from P48.72 billion to P20.88 billion, which they say will cut the Rice Competitiveness Enhancement Fund’s (RCEF) support.

They added that lower import costs could reduce palay prices by P4.32 per kilo, slashing annual farmer incomes by P86 billion. If imports are undervalued, only P7.4 billion would be available for support programs aside from the P10-billion RCEF, while farmer losses could reach P72 billion annually.

Moreover, the RCEF has already been under implementation since 2019, but the agricultural sector’s share in gross domestic product never surpassed 11 percent during Balisacan’s tenure.

The groups are seeking an in-person meeting with President Marcos to directly raise their concerns over problems in the agricultural sector, that has been growing since the Duterte administration.

No changes

Although the House of Representatives has proposed amending the Rice Tariffication Law, the RCEF and the many problems in its implementation remained the same while the government geared tariff cuts in a bid to fight inflation.

If President Ferdinand Marcos Jr. approves Balisacan’s policy change, the group said that they were planning to file a temporary restraining order because they said it did not follow proper consultation and legal procedures.

Aside from Sinag and FFF, the groups present included Philippine Confederation of Grains Associations, Abono party list, United Broiler Raisers Association, Philippine Egg Board, National Federation of Hog Farmers Associations in the Philippines, AGAP party list, PhilPalay, Philippine Chamber of Agriculture and Food Inc., PhilMaize, Alyansa Agrikultura, Rice Watch Action Network, Integrated Rural Development Foundation, Bantay Bigas, and Pambansang Mananalon, Mag-Uuma, Magbabaul, and Magsasaka ng Pilipinas.

The Inquirer had sought Balisacan’s comment but had yet to receive any at press time.