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Tuesday, April 08, 2008
Gov't lifts rice, corn importation quota
MANILA -- The government has temporarily lifted the quota on rice importation to ensure that there would be ample supply of grains in the country, Palace officials said Monday.
Presidential Management Staff director general Cerge Remonde and deputy presidential spokesperson Lorelei Fajardo stressed that while the importation limit has been lifted, the importation tariff remains, which means corresponding dues should still be paid before any importation is made.
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Remonde said as far as he knows, the importation quota on corn had also been lifted.
"Anybody can import rice, the quota is lifted but the tariff must be paid. The lifting of the quota refers to importation. So they can import as much as they want for as long they do not withhold but channel it to the market, then that will be okay," he added.
The Department of Agriculture (DA) and the National Food Authority (NFA) earlier said the lifting of the importation quota would just be temporary or while there is a problem in rice supply.
The private sector at present is allowed to import a maximum 300,000 metric tons (MTs) of rice annually, but due to the high world prices and the tariff, private traders had only been able to buy up to 10 percent of the total volume for the past two years.
Agriculture Secretary Arthur Yap, in a statement, said the government is encouraging "importation of rice by all parties aside from the NFA."
Yap said interested parties may do so after applying for a permit to import from the NFA and paying the corresponding taxes. "Rice importation is not exclusive to the NFA," he said.
Tariff cut
To entice traders to import more rice, the government is looking at measures to assist the private traders either through a slash in rice import tariff or to increase a subsidy given to the NFA to allow them to shoulder a portion of the import costs.
President Gloria Macapagal-Arroyo earlier ruled out a tariff cut, which would only affect the government's overall revenue collections.
Yap and NFA administrator Jessup Navarro said they are leaning towards the extension of the NFA's Tax Expenditure Subsidy Program (TESP) where the National Government would shoulder up to 50 percent of the tariff imposed on all rice importations.
They said the measure would be able to ensure enough supply of rice and at the same time protect the palay (unhusked rice) farmers.
Tax Expenditure Fund
Under the said scheme, the NFA utilizes funds available under the Tax Expenditure Fund, which is included in the National Government's annual budget, to pay for the tariff on imported rice.
The Tax Expenditure Fund is given to government-owned and controlled corporations, which applied for tax expenditure subsidy, on top of the agency's annual budget.
The proposed TESP is expected to be raised in the Cabinet meeting in Malacañang Tuesday where Yap would give an update on the present rice supply and distribution status.
Remonde said members of the grains industry led by Teresa Alegado, president of the Grains Retailers Confederation of the Philippines, is also invited to the Cabinet meeting for their inputs.
The different government financial and social security institutions, according to Fajardo, are also expected to submit their recommendations and plans on how to "boost rice production and alleviate poverty using their surplus."
Fajardo assured the public that the government, particularly the President, remains on top of the rice situation.
Fajardo and deputy presidential spokesman Anthony Golez said that the President Arroyo is doing everything she can to find solutions to the present rice situation and had even directed all governmental agencies "to study and recommend solutions and such other programs that will help alleviate, if not stem, the rising prices of rice and to address the concern of rice production".
Population growth
They also clarified that the government is not blaming the population growth for the current rice problem, although it is a major consideration in projecting consumption and crafting policy.
Fajardo and Golez added that population growth, like climate change, is a global phenomenon, ruling out mismanagement by the government to address basic needs as raised by Pampanga Archbishop Paciano Aniceto.
"The factors necessary for consideration in the crafting of policy are rapidly changing too, we must as a people be part of the government's efforts to address these issues. It is not enough to criticize, we must be part of the solution or we suffer the fate of being part of the problem," Fajardo said.
Golez reiterated that the rising cost of rice is brought about by several factors, with some of them not even in the control of the Philippine government like the cost of fertilizers and gasoline.
Long-term solutions
Golez and Remonde welcomed the recommendation of former President Fidel Ramos for the government to refrain from relying too much on agricultural subsidies but to focus more on long-term solutions.
They added that the Arroyo administration totally agrees, but it just so happens that there is a current global food supply problem, which has "created speculation, panic and alarm, not only in the Philippines but in other parts of the world."
Remonde said all suggestions relating to agriculture are being looked into by the government, including a restructuring of the NFA and imposing price control. He said everything, however, is being assessed at present and there is no definite stand on these issues at the moment.
The two officials assured rice traders that they have nothing to worry about increasing their rice stocks as long as their transactions are aboveboard and properly documented.
"The government is serious in ensuring that no one can take advantage of this situation. Hoarding is a despicable act and government cannot allow the hoarders to take advantage of our people especially the poor. No fear for fair traders," Fajardo added.
Some rice traders are calling for a clearer policy for fears that they could be charged with hoarding if they increase their current stocks of rice. (JMR/Sunnex)
For more Philippine news, visit Sun.Star Baguio. (April 8, 2008 issue)
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