Local farm group Federation of Free Farmers (FFF) is urging the Department of Agriculture (DA) to disclose more details on its plan to import rice from India, apart from encouraging more imports from other countries.
“It is not clear if a government agency will undertake the shipment, notwithstanding the fact that the Rice Tariffication Law (RTL) prohibits importation by the National Food Authority. If the private sector will do the importation, how will the Indian quota be allocated among importers?” said Raul Montemayor, FFF national manager, in a statement.
Last October, India has allocated as much as 295,000 metric tons (MT) of non-basmati white rice for the Philippines.
FFF also urged the reinstatement of the 50 percent tariff on rice sourced from non-Asean suppliers.
“Based on data from the Philippine Statistics Authority, imports from non-Asean countries have not increased significantly despite the tariff reduction. Retail prices have not dropped and most of the rice imports are for premium grades for sale to well-off consumers,” Montemayor added.
Starting in 2021, tariffs on non-Asean rice were cut to 35 percent, or equal to the preferential rate given to Asean suppliers like Vietnam and Thailand.
The said reduction was also repeatedly extended, with the latest extension under Executive Order No. 10 set to expire by year-end.
“Since 2021, government lost over a billion pesos in foregone tariff collections. Under the RTL, these funds should have been used for programs for rice farmers. Why are we allowing importers and traders to pocket a billion pesos, with practically no benefit to consumers, while depriving farmers of much needed funding?” Montemayor said.
According to data from the Bureau of Plant Industry’s National Plant Quarantine Services Division, as much as 2.94 million MT of imported rice has arrived in the country as of November 16.
Bulk of the said volume at 2.62 million MT equivalent to 89 percent of the total shipments were from Vietnam.
