Full-blown investigation sought into rice import

A farmer-turned lawmaker has asked the House committee on agriculture and food to conduct a full-blown congressional investigation in aid of legislation into the massive rice importation, irregularities and other anomalies in the trade which allegedly defrauded the government some P1 billion in taxes.

Anakpawis Rep. Rafael Mariano called on the House leadership to act on House Resolution 183 seeking to investigate the controversies as he filed the continued complaints of huge amount in lost revenues because of the supposed irregularities besetting rice importation which is also jeopardizing the livelihood of millions of local rice farmers.

“The opening up of rice importation to the private sector further increased the volume of rice imports coupled by illegal practices like evading payment of tariffs and recycling of import permits,” Mariano said.

“The massive importation, ill-timing of rice imports, anomalous rice procurement wasting government’s resources, illegal trade practices and other irregularities in the rice industry, as well as widespread conversions of lands to other uses hamper the potentials for sustainability in the rice industry and further threaten the nation’s food security,” Mariano said.

Mariano’s call for the investigation of the irregularities in rice importation came after the exposé of Zambales Rep. Ma. Milagros “Mitos” Magsaysay who bared the government lost P1 billion in taxes due to undervaluation of 186,000 metric tons of rice importation from Pakistan and Vietnam.

Magsaysay said rice importers deliberately undervalued their rice importation from $380 per metric ton to $110 per metric ton resulting in losses for the government to the tune of $20 million to $23 million or roughly P1 billion.

Magsaysay’s revelation prompted House Minority Leader Danilo Suarez to announce that his group will include in its proposed congressional performance audit of various government departments, including the responsible agency for the alleged irregularity of rice importation, the Bureau of Customs.

Meanwhile, to arrest the flooding of undervalued imported rice, the militant peasant group Kilusang Magbubukid ng Pilipinas (KMP) dared President Aquino to order the National Food Authority to increase the farm-gate price of palay to P20 per kilo from the current P17 government buying price.

The KMP issued the statement after deputy presidential spokesman Abigail Valte said Agriculture Secretary Proceso Alcala yesterday met with the farmers groups “precisely to address their proposal.”

KMP secretary general Danilo Ramos said “if President Aquino is really sincere in addressing our demands, all he has to do is to immediately order the NFA to increase the farm-gate price of palay to P20.”

“Harvest time is set to begin next month and we fear that our produce will again be bought at very cheap price. The current farm-gate price of palay cannot help us recover from the very high costs of production coupled with the seemingly endless oil price hikes,” Ramos said.

Ramos added “the NFA’s P17 buying price and its less than two percent procurement of the total harvest failed to influence the much lower prices of palay by unscrupulous traders.”

“In fact, rice traders are the ones who benefit from the P17 per kilo price. The NFA is not buying palay at the farm-gate. When farmers themselves bring their produce to NFA warehouses, they will face the agency’s very strict requirements and will be obliged to sell their palay to unscrupulous rice traders,” Ramos added.

A KMP study showed that “at the current P55 per liter, each rice farmer shoulders P41,250 for gasoline alone, and that includes land rent, fertilizers, pesticides, and machinery rentals, the costs of production would shoot up to a minimum of P75,000 production costs per hectare.”

“At an average harvest of 80 cavans or 4,000 kilos per hectare, each rice farmer spends P18.75 per kilo of palay while unscrupulous rice traders only buy palay at the average price of P12 per kilo nationwide,” Ramos said.

Aside from the increase in the farm-gate prices of palay, the KMP who organized the National Rice Farmers’ Conference on Tuesday submitted a manifesto to Alcala calling for a stop to importation of rice.

“Another problem that pulls down the prices of palay is the release to the market of imported rice. The NFA should stop the flooding of imported rice in the local market,” Ramos said. –Charlie V. Manalo, Daily Tribune