FEF hails the Cabinet’s decision not to seek an extension of the quantitative restrictions on rice, as announced by Socio-Economic Planning Secretary Ernesto Pernia.

1. 105 Philippine Social Science Center (PSSC) Commonwealth Ave., Diliman, Quezon City
Telefax: (632) 4532375 (Main Office) Tel No.: (632) 8939602 (Accounting)
Website: www.fef.org.ph Email: fefphilippines@gmail.com / fef@fef.org.ph
Foundation for Economic Freedom
BOARD OF ADVISERS:
Gerardo Sicat
Cesar A. Virata
BOARD OF TRUSTEES:
Roberto De Ocampo
Chairman
Romeo Bernardo
Vice-Chairman
Calixto Chikiamco
President
Ernest Leung
Treasurer
Atty. Ricardo Balatbat III
Corporate Secretary
Anthony Abad
Art Corpuz
Eduardo Gana
Felipe Medalla
Vaughn Montes
Simon Paterno
Perry Pe
Gloria Tan-Climaco
Atty. Maria Gracia Gamez
Asst. Corporate Secretary
and Director for Policy and
External Relations
FEF HAILS CABINET’S DECISION NOT TO EXTEND QUANTITATIVE RESTRICTIONS ON RICE AND
URGES LIBERALIZATION OF RICE IMPORTS
We, the Foundation for Economic Freedom (FEF), an organization dedicated to market-
oriented reforms, well-defined and secure property rights, consumer welfare, and good
governance, hail the Cabinet’s decision not to seek an extension of the quantitative restrictions
on rice, as announced by Socio-Economic Planning Secretary Ernesto Pernia.
Non-extension of quantitative restrictions on rice will pave the way for the liberalization
of rice imports, which will lead to lower rice prices, reduction in hunger, and lower inflation.
Lower rice prices and higher disposable incomes for the poor, in turn, will boost the country’s
competitiveness, improve quality of life, and lead to a reduction in malnutrition. Reports show
that the previous administration’s policy of high rice prices by limiting rice imports to encourage
rice self-sufficiency had resulted in higher poverty incidence and increased malnutrition.
Furthermore, we urge the Duterte administration to institutionalize the liberalization of
rice imports by seeking legislation to abolish the National Food Authority’s virtual legal rice
monopoly. Instead of being a monopoly rice trader, the NFA should be limited into an agency
maintaining rice buffer stocks against an unpredicted rice shortage.
We also recommend the imposition of reasonable tariffs on rice imports under a regime
of free rice trade. The tariff revenue raised should then be used to help rice farmers to increase
their productivity or diversify into higher value-added crops.
Release Date: September 9, 2016

2. 105 Philippine Social Science Center (PSSC) Commonwealth Ave., Diliman, Quezon City
Telefax: (632) 4532375 (Main Office) Tel No.: (632) 8939602 (Accounting)
Website: www.fef.org.ph Email: fefphilippines@gmail.com / fef@fef.org.ph
For more information, please check our website: www.fef.org.ph, or contact the following:
Ranna Pintor, Senior Program Officer – rannapintor@yahoo.com /+63 2 453 2375
Mabel Almenteros, Communications Officer – mialmenteros@fef.org.ph/ +63 2 453 2375