Farm groups on Wednesday criticized the government plan to augment rice stocks by allowing the private sector to import 600,000 metric tons between now and September 15.
According to the Kilusang Magbubukid ng Pilipinas (KMP), the proposal by the Department of Agriculture (DA) for a fast lane on rice importation is equivalent to a “total abandonment of the local rice industry.”
At the House Committee on Agriculture on Wednesday, DA officials bared the need to augment rice stocks with imports during the lean months in preparation of the effects of El Nino possibly sourced from Vietnam, Myanmar, Thailand, India, Pakistan and other countries.
“The imported rice that will be imported from August to September will arrive during the harvest season by October and its instant effect is a drop in palay prices of our farmers,” said Danilo Ramos, KMP chairperson, in a statement.
Rafael Mariano, KMP chairperson emeritus, said that instead of messing with the planting calendar, the DA and the National Irrigation Administration should instead work to expand the irrigated rice lands in the country, support the distribution of fertilizers and help distribute subsidies, among other useful endeavors.
Advocates at Bantay Bigas also said the government must abide with its promise to focus on increasing local rice production.
Cathy Estavillo, Bantay Bigas spokesperson, said the DA is seeking additional rice imports despite President Marcos Jr.’s directive for the National Food Authority (NFA) to prioritize local rice production over imports.
Estavillo claimed that in the first six months, the NFA procured only 0.31 percent or 27,838.65 MT of the 9 million MT target palay procurement for the period.
“The NFA argues traders buy them at a higher price so there is really a need to increase palay buying prices not lower than P20 per kilo and directly purchase from farmers and not through traders,” Estavillo said.
Bantay Bigas noted the NFA’s proposed budget next year is P9 billion, which should be enough to procure 450,000 MT of palay at P20 per kilo.
The Integrated Rural Development Foundation (IRDF) expressed its concerns over the increase in rice prices attributed to price hikes in the international market resulting from India’s policy to curb rice exports and the impact of massive flooding in China.
“The knee jerk reaction of domestic rice prices to international shocks simply reflects the lack of government control on local rice trade and the incapacity of the NFA to stabilize local prices. With its function reduced to mere bufferstocking under the Rice Trade Liberalization Law, the NFA could not go after unscrupulous rice traders that may have already started hoarding in anticipation of higher prices as domestic supply further tightens,” said Arze Glipo, IRDF executive director.
The group also said the situation calls for increased government intervention rather than allowing private rice importers to secure domestic rice supply.
IRDF also recommends prioritization of subsidies to farmers affected by the Rice Tariffication Law to boost rice yield to 22 million tons and ensure self-sufficiency without depending on rice imports.
The group also proposed fertilizer subsidies of at least 60 percent needed by each farmer and the repair and maintenance of irrigation systems.
Farmer cooperatives should also be allowed to import fertilizer directly from international suppliers with government guarantee to ensure cheaper prices.
