Impact of Rice Tariffication Law in selected Rice Farmers in Nueva Ecija, Philippines

This paper discussed the impact of rice tariffication law in selected farmers in a certain barangay in Nueva Ecija, Philippines. The descriptive method of research was utilized and the questionnaire served as the instrument for collecting data. Findings showed that the initial impact of the law that had already experienced by the selected farmers was the declining farm gate prices of “palay”. This situation affected their income and livelihood. Despite this problem, most of the farmers responded that they would continue in rice farming because this is the only way they know how to earn a living. As initial support from the government, most of the respondents received free certified inbred seeds and availed rice credit assistance with minimal interest rates. Additionally, they were given trainings to enhance their skills and knowledge of rice production. Keywords— Agriculture, rice farmers, rice production and rice tarrification law.


INTRODUCTION
Tariffs and quantitative restrictions (QRs) are two policy instruments used in dealing with the international trade of goods. Tariffs are the taxes imposed by the government on both imported and exported products, while quantitative restrictions (QRs) are measures such as quotas, bans, and licensing requirements imposed by the government to limit the volume of a particular commodity that enters the country [1].
The Philippines acceded to the World Trade Organization (WTO) in 1995. Under the agreement on agriculture, QRs and other protective measures that may distort free trade will be removed and replaced by reduced tariff rates. Rice was, however, exempted from the removal of QR because of food security issues [2]. The Philippine This removes the previously placed quota and replaced with higher tariffs on rice imports, permitting traders to import a near-unlimited quantity of rice [4]. The new law provides the following tariff rates: 35% for rice imports originating from Association of Southeast Asian Nations  Even though the government gives assurance that proper implementation and measures will be put in place, rice farmers are still concerned that tariffication law would hurt them and the local rice industry in the long term. The objective of this study is to determine and analyze the impact of rice tariffication law on selected rice farmers in Nueva Ecija, Philippines.

MATERIALS AND METHODS
The study utilized the descriptive method of research     [8], the farmers must decrease their production cost to Php. 6.65 per kg to earn the same level of percentage profit. Though this profit margin is still too narrow to make economic sense to farmers.

C. Impact of RTL
Moreover, 69% of the respondents believed that the law is not helping in bringing down the prices of milled rice in the market. According to data from [9], this year's average retail price of rice from January to September 2019 was ₱43.47 per kilogram. This was lower by 2.5 percent from the previous year's level of ₱44.58 per kilogram. The monthly retail prices during the period were lower than their respective levels in 2018 except for the first three months of 2019 (Figure 1).

Figure 1
Despite the declining prices of palay, 83% of the farmers responded that they will continue to be rice farmers because this is the only way for them to earn a living for their family. The declining farmgate prices of palay can possibly affect the future decisions of farmers to continue on rice farming and if that happens there is a possibility that it will affect the supply of local rice in the country.
As to the implementation of safety net measures or the RCEF programs, rice farm types of machinery and equipment are not yet given to eligible farmers' association and registered rice cooperative. Meanwhile, 92% of the respondents already received free certified inbred seeds, 62% already availed rice credit assistance with minimal interest rate and 25% already attended trainings to enhance their skills and knowledge on rice production.

International Journal of Advanced Engineering, Management and Science (IJAEMS)
[  According to data of [9],  to reduce their difficulties [11] in rice framing [12].Lastly, the government should provide the farmers with needed assistance and should undergo training to ensure their development [13] as cited in [14].