Alarm Raised on Rice Importation by Private Sector

“The private sector that will benefit from liberalized rice importation is the same unscrupulous trader suspected of repacking NFA rice that are mixed with the commercial rice and sold at a higher price. Giving them ample liberty to import rice will lead to more abuse of their discretion and the opportunity to dictate the prices of rice as they also control the supply from domestic sources,” said Jessica Reyes-Cantos, lead convenor of Rice Watch and Action Network (R1).

R1, a coalition of farmers and non-government organizations, also criticized the World Bank for pushing the country further to the pits because of its straight-jacket neo-liberal approach of liberalized trade that will not work particularly now when even the top exporters of rice like Vietnam and Thailand refuse to release their precious supply into the world market.

“The World Bank and Yap’s prescriptions are outright ineffective because these will not bring down domestic prices given the skyrocketing prices in the world market. Worse, this kind of intervention clearly denies the government of its needed revenue to support rice production and the rice farmers. On the other hand, the public will continue to suffer from high prices of rice while the traders are given another opportunity to gain from this crisis,” said Cantos.

Cantos said the current price at $747 per metric ton of rice in the international market will end up at P32 per kilo in the local market with the tariff reduced to 0 percent and giving the rice trader only 10% margin for packing and hauling expenses.

R1′s computation of the effect of the current world market price and the corresponding tariff reduction showed that the 40 percent tariff will result to P46 per kilo of imported rice in the local market, 20 percent tariff will end up at P39 per kilo and 10 percent tariff will lead to P36 per kilo of rice in the local market.

“Allowing genuine farmers groups to import rice would be ideal so that the farmers will be able to recoup their losses from the shortfall in their production and be able to benefit and not harmed by the competing rice supply from importation,” said Cantos.

Cantos said the key issue in allowing genuine farmers groups to directly import rice is their capacity in terms of capital, management and competitiveness in the midst of a rice industry that is held in the neck by regional cartels and smugglers. She said the rice industry really needs an overhaul before it can benefit the poor rice farmers.

“We urge the agriculture department to strengthen their regulatory powers through the National Food Authority while running after corrupt agriculture and NFA officials found to be in cahoots with unscrupulous traders. The people are suffering due to this government’s neglect of the rice industry and rural development. The challenge lies on the President and Yap. Prove that there is no rice crisis and bring down the prices of rice in the market,” Cantos added. (ENDS)

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