500k MT rice arriving from India, Taiwan
By Nidz Godino
"We received reports that around 100,000 tons of imported rice have already arrived in the country…. part of 495,000 MT committed by import permit holders to Agriculture Secretary Francisco Tiu Laurel," Department of Agriculture (DA) Undersecretary Roger Navarro said in statement nearly 500,000 metric tons of rice from Taiwan and India will arrive beginning this month until February 2024.
This is in preparation for possible impact of El Niño phenomenon on palay production.
Meanwhile, total of 20,000 bags equivalent to 1,000 MT delivered before Christmas Day constituted first batch of 40,000 bags of rice donated by Taiwan, Navarro said.
Another 75,000 MT will arrive from India starting this week until early January, DA usect l said.
" 75,000 MT due in coming weeks is part of 295,000 MT of rice India has allocated to Philippines," Navarro said.
In October, India approved export of over one million MT to seven countries, with Philippines getting over 28 percent of export allocation.
"With arrival of imported rice and volume harvested by farmers in recent months, country will have sufficient supply of national food staple until next harvest starts in March," Navarro noted.
These imported rice will be slapped with import duty of 35 percent, he said.
He noted that country's daily rice consumption is 36,000 MT per day, or 1.08 million tons monthly.
Economic managers, especially Bangko Sentral ng Pilipinas (BSP), are closely watching rice supply situation due to its impact on inflation.
BSP has aggressively raised interest rates since last year to tame inflation, affects purchasing power of consumers and undermines economic growth.
Based on monitoring of DA, retail price of local regular milled rice was pegged at P52 per kilo; local well-milled rice, P56 per kilo; local premium rice, P62 per kilo and local special rice, P68 per kilo.
Imported well-milled rice was sold at P58 per kilo; imported premium rice, P61 per kilo and imported special rice, P65 per kilo.
Rice watch group Bantay Bigas said extension of low tariffs on commodities, particularly on rice, under Executive Order 50 only shows measures did not deliver goal of lowering prices.
"Consumers did not feel effect of low tariff but price of food products continues to rise, especially rice," Bantay Bigas spokesperson Cathy Estavillo said.
She said this extension will only serve interests of importers and traders and will result in billions of forgone government revenues.
"Our call remains to strengthen local production through support services and subsidies to farmers, post-harvest facilities and issue EO to stop implementation of Republic Act 11203 (Rice Tariffication Law) so that trading function of National Food Authority can be immediately restored… NFA can buy significant volume of farmers' produce, we will also call for immediate release of P12-billion fund from Rice Competitiveness Enhancement Fund and distribute it to farmers…we call on different sectors and agricultural stakeholders to unite against re-extension of low tariffs," Estavillo said.
Meanwhile, former agriculture secretary Leonardo Montemayor criticized decision to extend lower tariffs on rice, corn and pork until end of 2024, saying for the last three years of its implementation, hog raisers and farmers suffered from yearly leeway given to imported agricultural commodities but which did not benefit consumers and government.
"It has also caused Bureau of Customs, government billions of revenue losses," Montemayor said.
He said t if economic managers will solely depend on lower tariffs, target of affordable food will not happen and should be done is strengthen local production if government wants cheaper agricultural commodities for Filipinos.
"Based on our experience in the last three years as lower tariffs started in middle of 2021, during time of former president Rodrigo Duterte, it failed to bring down retail prices of rice, corn and pork, even with tariff of 35 percent or 40 percent for in quota or out quota, retail prices of pork should not exceed P300 but cheapest imported pork was pegged at P400 and above, what is guarantee extension of lower tariffs will benefit consumers… on the part of farmers, it affects their production," Montemayor said.
Montemayor also backed imposition of suggested retail price on pork to prevent overpricing in the market.
He added promise of affordable prices for consumers does not happen, same with rice, based on monitoring of DA in Metro Manila markets, imported well-milled and regular milled rice were not available as imported premium rice was sold for as high as P60 per kilo and imported special rice, P66 per kilo.
At the same time, Montemayor said farmers will be further affected by lower tariff on imported corn as prevailing price in world market was only P14 to P15 per kilo compared to P19 per kilo for locally produced corn.
"Even if you impose tariffs, retail price of imported corn will be P16, P17 per kilo... will affect retail price of corn, especially with lower tariffs," he noted.
For his part, Philippine Pork Producers Federation president Nonon Tambago said move to extend lowering of tariff has further affected confidence of local swine farmers amid slump in farmgate price as it reached P175 per kilo.
"We are deeply disappointed with decision to extend lower tariff on pork until Dec. 31, 2024…over the past three years, multiple executive orders have been issued to lower tariffs, but they have not achieved goal of making pork more affordable for consumers," Tambago told media.
He noted despite decrease in farmgate price, retail price remains high at P350 per kilo.
"Instead of focusing solely on lowering tariffs, it is crucial to address gap between farmgate and retail prices as part of long-term solution…important for economic managers to consider real situation faced by thousands of local farmers, rather than consistently favoring few importers and traders," Tambago added.
Samahang Industriya ng Agrikultura executive director Jayson Cainglet said it was unfortunate economic team succeeded in convincing President Ferdinand Marcos Jr. to issue EO 50.
"Here in the Philippines it is reverse…local producers are penalized and importers are rewarded and pampered with four straight years of reduced tariffs on rice, pork and corn," Cainglet said.
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