S Cotabato starts operating P32M rice processing center

MANILA, Philippines - A P32-million rice processing center funded by the Department of Agriculture has started operating in the municipality of Sto. Nino in South Cotabato.

The new rice processing center situated in Barangay Ambalgan would provide the postharvest needs of 5,000 farmers cultivating 10,000 hectares of rice lands in Sto. Nino and nearby municipalities.

The grains processing and storage center would enable the farmers to dry, process and store palay (unhusked rice) even during bad weather conditions.

Also to be installed in the rice processing center is a rice sorter, a packing machine and a delivery truck.

The facility would be managed by the Firmus Farm Service Cooperative.

“These efforts seek to improve the rice sector amidst negative issues on rice smuggling which the government is extensively investigating,” said Agriculture Secretary Proceso Alcala.

Alcala reiterated that the DA upholds the Agriculture Tariffication Act that imposes special restrictions on rice imports.

Hence, all rice imports must have a permit from the National Food Authority (NFA).

The Philippines is petitioning the World Trade Organization for an extension of the quantitative restriction on rice until 2017.

This entails the continued imposition of a high tariff on rice imports outside the minimum access volume (MAV).

Under its commitment to the WTO, the Philippines allows the entry of 350,000 metric tons of rice under the MAV at 40 percent duty, while imports outside of MAV are levied a 50 percent duty.

“For as long as the Act is in effect, rice traders need to obtain permits from the NFA before shipping rice into the country or else these shipments would be considered as smuggled upon arrival,” said Alcala.