Public confused by govt rice import policy - FFF

MANILA, Philippines - The Federation of Free Farmers (FFF) on Wednesday called on the government to “get its act together" on its policy on rice importation. A day after President Gloria Macapagal Arroyo announced the removal of quantitative or import restrictions on rice and allowed the private sector to import any volume of the commodity, subject only to a 50% tariff, Agriculture Secretary Arthur C. Yap said all importations must be undertaken through the National Food Authority. “Apparently, Malacanang has belatedly realized that lifting the rice import quota violates existing law (Presidential Decree No. 4, as amended), which gave the NFA the exclusive authority to import rice," said FFF president Leonardo Q. Montemayor in a statement sent to media. He said the law requires the NFA to regulate the total quantity of rice that may be imported to protect local rice farmers from over importation, which would depress local palay prices and undermine the policy objective of rice self-sufficiency under the Agriculture and Fisheries Modernization Act. The farmers' group questioned Yap’s plan to encourage private rice importers by requiring them to pay from P2 to P3 per kilogram “service fee" to the NFA, instead of paying customs duties of P15 per kilogram, assuming an imported rice price of P30 per kilo. “This proposal will circumvent or violate the law because it will effectively reduce the tariff to be paid by rice importers from the legally mandated 50% to around 10%," Montemayor said. He said only Congress has the power to change tariff rates. “While Congress has by law authorized the President to lower tariffs within a specified range, she can do so only when Congress is not in session and after the conduct of public hearings by the executive branch," Montemayor said. Malacañang also on Wednesday said it will conduct a study whether or not to allow the NFA to increase the prices of its rice supply, which is the lowest in the market. In a statement, Secretary to the Cabinet Ricardo Saludo said NFA had already been subsidizing its rice products to as much as P50 billion a year to ensure that its prices remain affordable to the public. “The Cabinet will consider NFA's proposal in light of our people's needs. The Cabinet will need to consider several factors. So (we) can’t say when we would decide," he said. In a press conference Wednesday, NFA administrator Jessup Navarro announced plans to increase prices of the NFA rice due heavy losses sustained by the agency. Navarro’s announcement came a day after world grain costs reached a record for the fourth straight session. Rice, the staple food for half the world, rose as much as 2.9 percent to $21.60 per 100 pounds in Chicago, before paring gains, a Bloomberg report said. The grain’s price surged due to the Philippines’ plan to import as much as 2.7 million tons this year and exporters’ refusal to sell more to ensure their supplies. An increase in rice prices may boost inflation, which already reached 6.4 percent in March, owing to a hike in grain costs. Navarro said in 2007 alone, the NFA has already incurred a loss of P1.5 billion as it tries to keep the prices of NFA rice to as low as P18.25 per kilo. He did not give any amount as to how much they are planning to raise their rates, nor a timeframe when such increase would be implemented. - GMANews.TV