NEDA exposed on flip-flopping rice tariff policy

NEDA exposed on flip-flopping rice tariff policy

THE National Economic Development Authority (NEDA) is on a hotseat when the Senate scrutinized their recommendation to reduce the tariff on importing rice.

On June 4, it was announced that the NEDA Board had approved lowering the rice import tariff from 35% to 15%.

The goal was to reduce the high rice prices, which were above fifty pesos per kilo.

However, during the Senate Committee on Agriculture hearing led by Senators Cynthia Villar and Imee Marcos, NEDA’s procedural failures were laid bare.

The Department of Agriculture (DA), who also attended the hearing, revealed that their recommendation was not followed before the policy announcement.

DA Undersecretary Asis Perez stated that their initial recommendation was to return the tariff to 50%.

“Our recommendation at that time before this…” said Usec. Asis Perez, Department of Agriculture.

Imee: “What do you mean at that time?”

Usec. Perez: “During the discussion of the CTRM, it was to bring it back to 50 percent.”

Imee: “Opposite? Bring it back to 50 percent?”

Due to the DA’s revelation, Undersecretary Perez could only laugh as it was far from NEDA’s resulting policy.

Senator Imee Marcos pointed out that there was no consultation with farmers and other stakeholders for the five-year policy.

During the hearing, NEDA was given a chance to answer Senator Imee’s question about when the consultation happened, but this was their response:

“We had a consultation on the comprehensive tariff program. I remember the tariff commission conducted consultation…” said Dir. Bien Ganapin, NEDA

Imee: “When was that?”

As NEDA couldn’t provide a clear answer, they deferred the question to the Tariff Commission representative.

Ganapin: “I defer to the Tariff Commission for the date.”

According to the Tariff Commission, they conducted a consultation with the agriculture sector on March 20, 2023.

However, the official failed to confirm whether any farmers attended their consultation.

“We invited all the stakeholders, consumer groups, government agencies, particularly the Department of Agriculture and the farmers’ group,” stated Comm. Marissa Paderon, Tariff Commission.

Imee: “Can we know which stakeholders were invited because they are all here, and none said they were invited?”

Paderon: “We can submit the official list of the parties notified and those who attended the hearing. There were quite a few. But they…ah…(ends with a smile)”

The senators also sought clarification on the present status of the policy in reducing the tariff on imported rice.

To recall, it was confusing because NEDA initially announced it as an official policy but later retracted, saying it was just a recommendation, although an Executive Order (EO) was mentioned.

“Regarding the NEDA Board’s decision, the meeting was held on June 3, and the recommendation of the CTRM as a member, as a committee of the NEDA Board, was approved. The EO…there is no EO yet, ma’am. It hasn’t been released or signed yet,” stated Dir. Bien Ganapin, NEDA.

Amid the impending issuance of the EO for the policy, Senator Cynthia Villar disclosed her conversation with the executive branch.

According to the senator, if the tariff fails to meet the target funds for the Rice Competitiveness Enhancement Fund (RCEF), the Department of Finance (DOF) will cover the shortfall.

The RCEF is the government’s assistance program for local farmers.

“We agreed with the Department of Finance that whatever the tariff shortfall, we will set a target for the Rice Competitiveness Enhancement Fund and financial assistance for rice farmers. If the target is not met, the DOF will cover it through the General Appropriations Act (GAA), so we will still have the same funds. What we don’t get from the tariff will be covered by the GAA,” said Sen. Cynthia Villar, Chair, Committee on Agriculture.

 

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