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08/09/2025

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08/09/2025
LAWIN.news

Revised Rice Tariff Law To Support Farmers

by Mae De Vera, LAWIN.news December 9, 2024
written by Mae De Vera, LAWIN.news December 9, 2024
USY DAY President Marcos signs three legislative measures into lawon Monday, including the Amendments to the Agricultural Tariffication Act or Republic Act No. 12078 at Malacañang. —Marianne bermudez
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On Monday, President Ferdinand Marcos Jr. enacted Republic Act No. 12078 to extend the Rice Competitiveness Enhancement Fund until 2031 with an increased budget of 30 billion pesos annually, modifying the 2019 Agricultural Tariffication Law to further support the Philippines’ rice industry by enhancing competitiveness and managing rice importation.

RCEF was originally established under the Agricultural Tariffication Law to enhance the competitiveness of local rice farmers. It has been funded by rice tariff collections, which initially provided an annual allocation of 10 billion pesos. With the new law, the fund triples, signaling a significant increase in support for the country’s rice sector.

The law aims to assist farmers by providing access to modern machinery, improved seed varieties, and additional training programs. These measures are intended to help farmers increase productivity, reduce production costs, and improve rice quality. The availability of better equipment and technology is expected to strengthen their market position.

The decision to extend and expand the RCEF comes amidst ongoing challenges in the agricultural sector, including fluctuating market prices and competition from imported rice. By enhancing the fund, the government seeks to alleviate some of these pressures faced by local farmers. The legislation is part of a broader effort to ensure food security and the sustainability of the rice industry.

The original Agricultural Tariffication Law removed quantitative restrictions on rice imports, allowing the private sector to import rice subject to tariffs. This move was designed to stabilize rice prices and ensure a steady supply. However, it also introduced competition for local farmers, who have faced challenges in competing with cheaper imported rice.

Under the revised law, the Philippine government remains committed to supporting its farmers through targeted interventions. The increased funding will be funneled into several key areas. These include farm mechanization, seed development, and training programs, all of which are designed to provide farmers with the tools and knowledge they need to thrive in a competitive market landscape.

The Agricultural Tariffication Law has been a subject of debate since its inception. Proponents argue that it has contributed to stabilizing rice prices and fostering competition. Critics contend that it has placed undue pressure on local farmers, who struggle to match the prices of imported rice. The revised law seeks to balance these competing interests by providing enhanced support to the domestic agricultural sector while maintaining the liberalized tariff system.

The new allocation for the Rice Competitiveness Enhancement Fund is set to prioritize the distribution of high-quality seeds, which can lead to increased yields. Additionally, funding will support the acquisition of new machinery and the implementation of training programs. These initiatives are aimed at modernizing farming techniques and improving overall productivity.

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Mae De Vera, LAWIN.news

Mae De Vera is a passionate advocate, creative professional, and entrepreneur. A graduate of Political Science from Saint Louis University and a law student of Arellano University, Mae is dedicated to empowering marginalized communities through outreach programs and advocacy. With a background in digital artwork, event flyer design, ESL teaching, and business management, Mae brings a versatile skill set to her endeavors. She also embraces her love for nature through farming, integrating sustainability into her life. Mae’s leadership experience as a consistent school student leader reflects her commitment to making a difference. Today, she combines her creativity, advocacy, and entrepreneurial spirit to create impactful stories and initiatives that inspire change. Disclaimer: The views and beliefs expressed by the author do not necessarily represent those of LAWIN.news, its management, editorial board, or staff.

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