The Federation of Free Farmers (FFF) on Wednesday asked the Department of Agriculture (DA) for greater clarity on the plan to import rice from India and from other countries, particularly on how the quota were to be allocated among the various importers.
“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.
In October this year, India agreed to supply the Philippines with as much as 295,000 metric tons (MT) of non-basmati white rice.
The farmer group also called 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 said.
In 2021, the tariff on non-Asean rice was reduced to 35 percent, the same preferential rate given to suppliers like Vietnam and Thailand. The reduction was also repeatedly extended, with the latest under Executive Order No. 10 set to expire by the end of the year.
“Since 2021, government lost over a billion pesos in foregone tariff collection. 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 complained.
According to the Bureau of Plant Industry’s National Plant Quarantine Services Division, as much as 2.94 million metric tons of rice have been shipped to the Philippines as of 16 November this year.
The bulk of 2.62 million MT equal to 89 percent of total shipments were from Vietnam.
