Direct-selling scheme eyed for rice farmers

MANILA, Philippines — The Department of Trade and Industry (DTI) and Department of Agriculture (DA) are proposing a direct-selling scheme for rice in a bid to stabilize prices.

In a statement, the DTI said it is working with the DA and industry partners to introduce a new business model that will enable farmers to sell rice directly to retailers.

Under the proposed setup, farmers will be linked with participating millers and the milling rates for rice will be fixed.

“This concept aims to allow farmers to distribute rice to retailers, increase their profits, reduce traders in between, and ensure low rice prices for consumers,” the DTI said.

The proposal was discussed by Trade Secretary Ramon Lopez, Agriculture Secretary William Dar, Trade Undersecretary Ruth Castelo, Agriculture Undersecretary Rodolfo Vicerra and Pure Rice Milling and Processing Corp. president Jojo Soliman.

So far, three millers from Luzon have expressed commitment to take part in the program.

Dar earlier said the DA has terminated its study on the possibility of putting in place general safeguard duties on rice imports.

He said the DA would discuss the matter with the Economic Development Cluster, which is chaired by the Department of Finance.

The World Trade Organization as well as the Safeguard Measures Act allow the government to impose general safeguard duties on imports if such are found to cause threat to the domestic industry.

Imposition of safeguard duties on imports gives relief to farmers as palay prices have gone down due to the flooding of imported rice in the market.

Following the implementation of the Rice Tariffication Law earlier this year, the country has so far imported more than two million metric tons of rice.

The Rice Tariffication Law has liberalized rice imports to ensure stable supply and price in the market.