Rice Tarriffication Law: A Stability Ideas

The Republic Act 11203 or Rice Tariffication Law has been opposed by many people and some
government personnel including agricultural organizations. But how this tariff affects the human
livelihood and economy? And what will be the necessity and ease of this law? If we merely looking at
the future agricultural and economical effects, we can say that there will be substandard or inadequate
effects and/or maybe farmers may gain satisfactions: economic contributions, higher sustenance, and
agricultural progression. Now, by observing the stand of our place, most of the farmers were having
different insights and arguments regarding the issue that may lead to agricultural revolution. However,
the government still enunciating the basis of the well-said law.

As it was stated tariffis is a form of regulation of foreign trade and a policy that taxes foreign
products to encourage or safeguard domestic industry. Traditionally, states have used them as a source
of income. Now, they are among the most widely used instruments of protectionism, along with import
and export quotas. Moreover, opposition to all tariff aims to reduce tariffs and to avoid countries
discriminating between differing countries when applying tariffs; and it tends to benefit domestic
producers and government at the expense of consumer. As a reactor of this law, this might be beneficial
enough to the government and the producers or farmers but we can't still ensure the perfect accordance
of the law (some failure).

Primarily, let's enumerate the benefits of this act. (1). It will reduce inflation. Inflation is very
common in our country wherein the past years had a lot of changes in terms of product prices. So if
there will be an act like this, it may improve our economy. How? If there will be tariff ( lowering the price
or cost of rice grains to E.g 7 pesos each kilo) then it also pull down (price floor) the cost of fertilizers and
other products like fish, meat and etc. The lower the price of rice grains then the lower the price of
agricultural products. It's just because fertilizers were used to maintain the rice grains' life and if this two
was totally low in price then the agricultural products ( meats,porks etc) might decrease its price too;
rice grains were mainly ingredients used to feed fishes, pigs and etc. Not also lowering the other
products but also the rice itself. So, do you want to reduce inflation in our country?

(2.)Maintains agricultural progressions. According to the government, there will be a 10 billion pesos
financial support to all farmers. This fund is enough for them to improve their agricultural matters such
as buying equipments or tools (machines) for them to easily work in farm, buying sufficient fertilizers,
and expanding their lands. The government ensures that the fund must be distributed validly. Do you
want to receive financial supports while farming?

(3) Gain Extra Funds. According to the National Food Authority, there are many imported rice
unsold. The implementing rules and regulations of the rice trade liberalization law allows NFA to
maintain a “rolling” buffer stock. This means the agency can stockpile an “optimal level” of 15 to 30 days’
worth of consumption. Any rice they purchase beyond the optimal can be sold to retailers or local
governments. The "first-in, first out" policy is being followed, and the P27-per-kilo price is retained until
further notice. Marcos said that if the agency was able to sell all the imported rice in stock at P27 per
kilo, the NFA stood to earn at least P6.75 billion.( source: Rappler.com). Do you want also government to
gain extra fund for them to distribute to farmer's fund?

(4). Higher agricultural development. If those things were implemented then there will be an
agricultural improvements rather than the economy. Farmers may receive financial support, agricultural
progressions, reduce inflation and government may gain extra fundsfund. Then we can conclude that the
economy might have a sustainability and development in terms of maintaining the price ceiling and price
floor of rice products.

Moreover, to all consumers, they would gain advantage in terms of consuming rice products. As it
was stated above, the inflation rate will reduced so consumers may able to buy rice in low price.

But, if we look at the negative side. (1.) Low income for farmers. As usual, farmers exerted their
efforts in farming but at the end, they will gain low income (e.g. 7 pesos per kilo). This might affect the
confidence and excitement of some farmers such as abstinence in farming, selling their lands and
stocking their rice for personal purposes. This law will push them not to sell their rice products due to
low price.

(2). Agricultural Revolution. Farmers would still do rally, vengeance and other principles. And if
there are instances that a farmer can't receive any financial support from the government then it will
also lead to a revolution. Maybe there will be financial support ineffective and failure for
implementation.

(3). Economic failure. If farmers will sell their lands then it may affect the economic progression.
Example, a farmer sold his land to a businessman whereas it will be use for an infrastructure or factory.
So do you want to live in a certain place where there is less rice fields?
 If this is the case, there will be a shortage in terms of rice products. Therefore the economy might
experience crisis regarding rice productions.

As a reactor, I conclude that there will be benefits and disadvantages of the law. However, I
observed that the government still do their responsibilities in settling the implementation of this act. I
would prefer to see the future effect of this Rice Tariffication Law wherein I can make my own judgement
if the law is effective or not. Right now, I would say that I have no dilemma because my purpose is only to
balance the idea of this new law.kjb.