Experts hit anomalies in rice industry

MANILA, Philippines – Experts blame the government’s excessive importation for the volume of rice flooding the warehouse of the National Food Authority (NFA) and problems facing the country’s rice farmers.

“With all this rice, NFA Administrator Lito Banayo showed since 2008, it’s a mistake that we import too much rice,” former Agriculture Undersecretary Ernesto Ordoñez says in an interview with ANC’s “The Rundown” on Wednesday night.

He cites government’s plan to import 3 million metric tons of rice, which is more than the impact on rice supply due to El Niño, estimated at around 400,000 metric tons.

Amid the oversupply of rice, Anakpawis party-list Representative Rafael Mariano says the country’s plans to import rice from Vietnam so close to the harvest season is also worrisome.

“Nakakabahala yung pahayag ng NFA na yung dapat dumating na April 15 na bigas na galing sa Vietnam ay maatraso ng August 15, at ipapakiusap pa na September 30. Pagpasok ng Oktubre nagsisimula yung pag-aani ng palay. Malaki and epekto niyan sa pagbagsak o pagbaba ng presyo ng palay. Kung walang budget na ilalaan sa NFA sa panahon ng pag-aani, dahil punong-puno po ang kamay at bodega ng NFA sa imported rice, babagsak nanaman ang aning palay sa bansa sa kamay ng mapagsamantalang rice traders,” Mariano says in an interview also on ANC’s “The Rundown” on Wednesday.

Mariano says, if produced locally, an estimated 2.4 metric tons of rice which the country imports could directly benefit some 3.5 to 4 million farmers and others who depend on the rice industry.

Recycled permits, duty-free importation

As if the problem with overimportation was not enough, Mariano says the rice trade is marred by illegal practices, including exemptions from the 40 to 50% tariff imposed on private sector importation, designed to protect farmers from having to sell their produce at unduly low prices.

“May practice na nirerecycle yung import permits at meron yung papabayaan yung NFA na may 40% tariff. Pag nandito na, hahantayin maraming nasa bodega mag-pupublic auction bababa ibebenta yung inimport, tutubo nanaman sila,” Mariano says.

Former Agriculture Secretary Leonardo Montemayor says tens of thousand of pesos are lost to excessive importation coupled with the duty-free importation by rice traders.

He reveals an estimated P1.6 to P2 billion pesos in potential government revenue was lost early this year after the NFA Council authorized the duty-free importation of 200,000 metric tons by the private sector.

“To us. that’s a direct violation of the law. Masakit yung duty-free, parang smuggling na yung nangyayari. Wala nang binabayaran. Private sectors enjoy this privilege, and we want President Aquino and Agriculture Secretary [Proceso] Alcala to look immediately into this,” Montemayor says.

Self-sufficiency in rice

Today, as the Aquino administration looks to making the Philippines self-sufficient in rice in 3 years, experts say government must walk the talk and find ways to strengthen the rice farmer’s capabilities.

“It’s very doable. If you used the resources properly, you can achieve it easily,” says Ordoñez.

“Pwede kung todo and suportang ibibigay ng pamahalaan sa patubig, sa post-harvest facilities, etc. It’s going to be a tall order but it can be done if we put our hearts into it,” Montemayor says. “Realistically, over next couple of years, we should expect some importation, but hopefully, estimates can be done on a much more realistic bases in order to give proper protection to our farmers.”

“Kung may sapat na ayuda o tulong ang magsasaka mula sa kredito o puhunan sa pagsasaka sa farm inputs, post-harvest facilities, marketing support mapipigilan and conversion ng cultural lands, we can raise self-sufficiency in rice,” Mariano adds.

What to do with the NFA

Today, amid calls to examine the viability of continuing the NFA’s operations, in the wake of the agency’s astounding P170 billion debt, experts say, the government should look into correcting the flaws in the NFA system to help it achieve its mandated role of protecting the country’s farmers.

“The NFA should participate in a bigger master plan,” Ordoñez says.

He regrets how previous plans to stop all importation had been shelved, allowing government to continue the policy of importing rice.

“It can’t be promoter and regulator at the same time,” Ordoñez adds. “It should be the regulator and leave market forces to play with the caveat that whenever it intervenes, it should be done with the right date and with the right systems–transparent.”

Montemayor admits the NFA has a big role in protecting farmers.

“It must make sure that subsidies are focused on production side, protect subsidy features. I’d like a more focused approach so those who need subsidy get it.” –Caroline J. Howard, ANC