Farmers bat for 'maximum tariffs' on rice | ABS-CBN

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Farmers bat for 'maximum tariffs' on rice

Farmers bat for 'maximum tariffs' on rice

ABS-CBN News

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Consumers buy rice at the Munoz market in Quezon City on July 30, 2018. Jonathan Cellona, ABS-CBN News

MANILA -- Several groups of farmers on Tuesday said tariffs on rice should be set at the "maximum possible rate" as Congress hears proposals to put duties on the staple in place of import quotas.

The Federation of Free Farmers, Alyansa Agrikultura and Rice Watch Action Network among others said the removal of import quotas "should be handled carefully" as a large numbers of farmers might not be able to compete against cheaper imports.

The groups also warned against the "dangers of relying excessively on imports for the food security of the country."

"In this regard, we support the 180 percent bound tariff rate being proposed by the House legislative version and the Department of Agriculture," the groups said, adding as this was allowed under World Trade Organization rules.

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The rate could be lowered if import prices are very high, or raised up to 180 percent when import prices are very low, the group said.

The groups also called on the government to review its commitment to impose a 35 percent tariff on rice from ASEAN countries, as Thailand and Vietnam are expected to supply most of the country's demand.

Economic managers have called for the removal of import quotas on rice, saying this would bring down prices of the staple by up to P7 per kilo.

In his third State of the Nation Address, President Rodrigo Duterte said the measure was urgent and called on Congress to prioritize its passage.

The farmers groups said they doubted that rice prices would go down significantly if the quantitative restrictions on imports are lifted.

"Importers will maximize their profits and sell at the highest price they can, even if they bought the rice for a very cheap price abroad."

They also warned that speculators could take over a large part of the rice trade to cause sudden movements in prices and make quick profits.

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