‘Gov’t to lose P1 B from overpriced rice’

MANILA, Philippines - Lawmakers from the House’s Makabayan bloc warned yesterday that the country stands to lose over P1 billion in rice importations after the National Food Authority (NFA) decided to import one million metric tons (MT) of rice from Vietnam.

Bayan Muna party-list Reps. Neri Colmenares and Carlos Zarate said the NFA Council would import one million MT of rice from Vietnam as the country’s buffer stock from July to September.

Colmenares said in the 500,000 MT rice import from Vietnam for the December 2013-March 2014 stock, the Philippines lost around P521 million. He said with the incoming importation, the total loss might reach P1.42 billion.

Citing a report from the US agriculture department, Colmenares said the market price from Nov. 16 to 22 last year was $377.86 per MT, or $84.39 cheaper than what Vietnam sold.

He said the NFA did not take charge of the delivery and could have bought the grain at $365 per MT, instead of $462.25 per MT, or a difference of $97.25.

For his part, Zarate said the overpricing could result in higher rice price as local traders and retailers would pass the additional cost to consumers.

“Our sources in the NFA Council said this round of rice imports may cause an overwhelming food inflation that might rival the 2008 rice price hikes,” Zarate said.

Anakpawis party-list Rep. Fernando Hicap said aside from overpricing, imported rice would flood the local market and compete with the local produce, as the delivery would arrive during the harvest season, which is in April or May.

“Our basic position remains to be ‘no to rice importation’ and we must rely on our own farmers. The best policy is to implement a genuine agrarian reform program and help our farmers produce all the rice needed by our country instead of depending on imports,” Hicap said.

Colmenares said the importation should be put on hold until Congress probes the matter.