MANILA, Philippines — There is no reason to panic after the United States Department of Agriculture (USDA) tagged the Philippines as the world’s top rice importer, a ranking official of the Department of Agriculture (DA) said yesterday amid the country’s dependence on imported grains.
In its latest “Grain: World Markets and Trade” report, the USDA projected that Philippine rice importation will reach 3.8 million metric tons in marketing year 2023-2024, overtaking China’s imports with an expected drop to 3.5 million MT.
In a radio interview, Bureau of Plant Industry Director Glenn Panganiban said the “raising (of) some alarm bells” is unwarranted.
“Yes, (no cause for alarm), and this is only an assumption as the utilization of sanitary and phytosanitary import clearance can only be seen after the arrival of the (rice) imports. For now, these are just projections. We have our local production so there is no reason to be worried,” Panganiban said.
According to Panganiban, it is also possible that China increased its local production, which is the reason for the decline in its rice imports.
“It is possible that China was able to upscale its production technology. That is why its production increased and there was a drop in the importation. On our part, our imports only complement our shortfall (in rice production). Compared to last year, we imported almost 20 or 25 percent of our rice supply. This year, we are expecting comparatively less, as for the last quarter, we expect relatively safe or enough for our demand,” he said.
At the same time, Panganiban said that allowing rice importation under the Rice Tariffication Law also provides revenues for the development of the rice industry.
Panganiban added that there is no exact date for the lifting of Executive Order No. 39 imposing price ceiling of P41 and P45 per kilo on regular and well-milled rice, 10 days into its implementation.
FEF: Cut tariff to 10%
Meanwhile, the Foundation for Economic Freedom (FEF) has proposed to slash tariffs on all rice grades from 35 percent to 10 percent for six months, which was vehemently opposed by farmer groups
In a Tariff Commission hearing yesterday, FEF fellow Roehlano Briones said the temporary reduction in rice tariff will have an immediate effect on the retail price of the food staple. Based on FEF’s computation, a lower tariff at 10 percent will translate to P36.40 per kilogram landed cost for rice.
Meanwhile, FEF fellow Fermin Adriano said this is a temporary measure that would provide “maximum benefit to a greatest number of people,” which are the consumers.
Moreover, this will allow government to “plug” uncertainties arising from the impact of natural calamities such as typhoons on rice production in the last quarter of the year.
Groups want Diokno, Balisacan out
Farmers’ groups on Friday called on President Marcos to remove Finance Secretary Benjamin Diokno and Socioeconomic Planning Secretary Arsenio Balisacan from their respective posts after advocating for the reduction of tariffs on imported rice.
In a joint statement signed by members of Samahang Industriya ng Agrikultura, Federation of Free Farmers, Philippine Confederation of Grains Associations, Kilusang Magbubukid ng Pilipinas, Pambansang Mannalon, Mag-uuma, Magbabaul, Magsasaka ng Pilipinas and National Movement for Food Sovereignty, they cited the hasty deliberation of the proposed tariff cut on imported grains to 10 percent from the current 35 percent.
Farmers groups have also bucked the possible appointment of Balisacan as secretary of the Department of Agriculture, despite the latter having already doused speculation that he is being tapped to replace Marcos at the DA.
Rice retailers receive cash aid
In Central Luzon, 336 rice retailers have each received P15,000 cash assistance under the Department of Social Welfare and Development (DSWD), in collaboration with the Department of Trade and Industry (DTI).
The cash assistance is under the DSWD Sustainable Livelihood Program that provides immediate support to rice retailers affected by the government’s mandated price ceiling on rice under EO 39.
DTI Region 3 information officer Nerson Ray Romero said other rice retailers can still avail themselves of the cash assistance by getting in touch with their market coordinators, DTI offices, Negosyo Center, and call or text DTI Consumer Care Hotline: 1-384 (1-DTI).
The Valenzuela City government will be shouldering three months-worth of rent for rice retailers affected by the price ceiling on well milled and regular milled local rice starting October.
According to the city’s public information office, 151 of the 200 registered rice retailers received cash aid amounting to P5,000 at the city hall on Thursday. They added that 49 retailers failed to receive the first batch of cash aid from the local government. — Ramon Efren Lazaro, Mark Ernest Villeza, Danessa Rivera