The burdensome tax measure TRAIN imposed by the Duterte government will severely affect rice farmers and threaten the country’s rice production and food security. “TRAIN will definitely wreck our livelihood and drive us into a state of hunger.”
“The overall rice production and consumption will be affected by TRAIN. TRAIN will cause worsening hunger among the poorest of the poor. Whatever minimal gain that low to middle employees will get from TRAIN will be easily offset and swept by rising prices of commodities, services and public utilities,” says Danilo Ramos, chairperson of Kilusang Magbubukid ng Pilipinas.
The new excise tax on oil products will result to a minimum 20 percent additional cost in the use of fuel-run farm equipment. Farmers will have to shell out more money out of their pockets for the added cost on production brought about by TRAIN. 2017 prices of diesel average at Php33 per liter. Now, diesel prices have gone up to at least Php40 per liter. Cost of fuel prices are higher in the provinces.
In a sample case study by KMP, a rice farmer in Bulacan province tilling one hectare of rice land will have to shell out additional Php294 per hectare per cropping for the use of mechanized hand tractor to pull and harrow rice lands during land preparation. This does not include added cost for the use of water pump for irrigation, use of dryer, payment for rice milling, transportation of rice produce and other daily expenses.
According to government data, the country has 4 million hectares of rice harvested lands. This minimum sample computation would translate to a Php1.176-billion additional cost for land preparation alone.
Other farm inputs such as seedlings, fertilizer, pesticides are also expected to increase. Food prices and commodities will increase too under TRAIN.
“This situation will have a domino effect on rice prices. Rice marketers and retailers are also expected to pass on added cost to consumers, resulting to hike in rice prices. We see prices of commercial rice increasing up to as much as Php58 to Php60 per kilo at the minimum in the coming months,” Ramos said. The current average price of commercial rice per kilo in retailers is Php50 to Php55 per kilo. NFA rice price averages at Php38 to Php40 with reported increase in some areas.
The NEDA has already rejected the NFA’s proposal to increase the buying price of rice from local farmers by Php5 per kilo from Php17 to Php22. The NFA is also poised to import 250,000 metric tons of rice this year. “These factors will affect severely the livelihood and economic state of rice farmers and TRAIN will make it worse,” Ramos said.
KMP will join nationwide mass protests the regressive TRAIN tax measure implemented by the Duterte government. ###