Should we reject the RTL?

THIS time of the year, there is usually a vilification campaign launched by detractors of the "Rice Tariffication Law (RTL)," or Republic Act 11203 of 2019, ending with the demand for the repeal or the radical amendment of the law. The reason is this is the peak of the palay (unmilled rice) wet harvest season (starting in the second half of September till first half of December) when prices start to decline.

The RTL lifted the quantitative restrictions on rice import and in its stead, a uniform tariff rate of 35 percent was imposed. It also removed the monopoly power of the National Food Authority (NFA) to import and confined the agency's role in establishing a rice buffer stock for emergency purposes. This means private traders can now import rice if they are able to pay the import duty of 35 percent and secure the necessary sanitary and phytosanitary import clearance from the Department of Agriculture.