DA: Rice importers should utilize permits within 2 months

MANILA, Philippines — Agriculture Secretary Francisco Tiu Laurel Jr. has ordered rice importers to utilize the Sanitary and Phytosanitary Import Clearance (SPSIC) issued to them by the Bureau of Plant Industry (BPI) within 60 days, warning that sanctions await traders who fail to comply.

Tiu Laurel issued Memorandum Circular 35, aiming to ensure food security in the country and protect the welfare of local farmers.

“The actual product/consignment must be shipped out within 60 days from the date the SPSIC is issued, regardless of the country of origin. This shipment is still subject to plant quarantine procedures at the port of entry upon arrival,” Tiu Laurel said in the circular.

He made the directive amid reports that rice importers failed to use the import permits months after BPI issued the SPSIC.

“The Department of Agriculture (DA) recognizes the need to ensure enough supply and buffer stock to ensure availability, accessibility and affordability of safe rice,” Tiu Laurel said.

He added that rice importers should fully utilize their applied SPSIC.

“Low or no utilization of SPSICs may result in sanctions and penalties in accordance with the guidelines as this can create discrepancies in the forecasting being done in relation to the availability of rice supply,” Tiu Laurel added.

From January to Aug. 22, at least 2.7 million metric tons (MT) of imported rice have arrived in the country using 3,723 SPSICs.

In August, at least 208,949 MT of imported rice entered the country while 167,403 MT arrived in July.

Executive Order 62 allowing a 15 percent tariff on imported rice took effect on July 7.

Based on the monitoring of DA in Metro Manila markets, the retail price of local rice remained lower compared to imported grains despite almost two months of the implementation of EO 62 on a lower tariff.

The National Economic and Development Authority has promised that the retail price of imported rice will go down by at least P7 per kilo with the implementation of EO 62 but this has yet to be felt by consumers.

Meanwhile, the DA has lifted the ban on the importation of poultry products from California and South Dakota, United States after the bird flu outbreak in the two US states was addressed.

Tiu Laurel issued Memorandum Order 37, allowing the resumption of the importation of domestic and wild birds and their products including poultry meat, day-old chicks, eggs and semen originating from California and South Dakota.

He reported that all affected counties in the two US states have already been cleared of the high pathogenicity avian influenza and no further outbreaks have been recorded.

Too much onion imports

Farmers’ group Samahang Industriya ng Agrikultura (Sinag) executive director Jayson Cainglet yesterday said the decision of DA to import 16,000 MT of white onions is too much amid the P12 per kilo drop in the farmgate price of red onions.

In a message to The STAR, Cainglet said that based on the consultation with onion farmers in Nueva Ecija, the cold storage facilities are still full of red onions.

“The onion farmers are suffering losses of P12 per kilo as the farmgate price went down to P45 (per kilo) compared to the cost of production between P52 and P58 per kilo,” Cainglet said.

He added despite the drop in the farmgate price of onions, the retail price of onions remains high between P120 and P150 per kilo.

“According to the farmers, there is no problem with them importing white onions but their request is the volume should not be too big. It should be half or 8,000 MT as there is so much supply of red onions,” he said.

He added that local red onions would rot in the warehouses if the farmers fail to sell them.

Sinag would appeal DA’s decision on behalf of the onion farmers.

Tiu Laurel approved on Wednesday the importation of 16,000 MT of white onion bulbs following the recommendation of the BPI.

The DA has confirmed that the current supply of red onion is enough until March next year, even with the expected demand increase in the holiday season this year.