P-Noy asked to curb rice smuggling

MANILA, Philippines - A farmers’ party-list group has warned that rice smuggled into Visayas and Mindanao has reached rice-producing provinces in Luzon, threatening to drag down local prices and discourage farmers from planting. 

In a statement, Abono party-list chairman Rosendo So said smuggled grains are now flooding markets in rice producing provinces of Nueva Ecija, Baguio, Pangasinan, La Union and Isabela.

So is urging President Aquino to “crack the whip” on Customs officials, especially those manning the ports in  Visayas and Mindanao, where grains from China and Vietnam are allegedly illegally entering the country.

He said rice shipments were often mis-declared as slag, wood wall, tiles and used clothing.

“We are facing a looming rice crisis not because of shortage of produce but because of oversupply. Smuggled rice has been flooding our markets, and millers cannot buy from local farmers because their warehouses are still filled to the rafters,” So said.

“With smuggled rice flooding the market, it is only incumbent upon the government to act immediately. If the prices of rice continue to plunge, local rice production will certainly collapse,” he added.

So said the price of palay has dropped from P18 per kilo last year to about P15.50 per kilo. In the absence of large volume milling, rice bran price has risen up to P14 per kilo from P10.

“Where will the farmers go now with the harvest season and no one is buying? The smugglers are killing the industry,” he said.

The party-list group also urged the National Food Authority (NFA) to increase its palay procurement from local farmers to 30 percent of the total production to curb smuggling.

The NFA earlier announced that it is allotting P10.9 billion to procure 615,985 metric tons  of palay from farmers this year. The country intends to produce 20.4 million MT of palay in 2013 after producing 18.03 million MT in 2012.

“That’s a mere three percent of the total harvest. If the government is really serious in helping farmers, they must increase the volume to 30 percent or at least P105 billion worth of palay,” So said.