"The private sector that will benefit from
liberalized rice importation is the same unscrupulous trader
suspected of repacking NFA rice that are mixed with the
commercial rice and sold at a higher price. Giving them ample
liberty to import rice will lead to more abuse of their
discretion and the opportunity to dictate the prices of rice
as they also control the supply from domestic sources," said
Jessica Reyes-Cantos, lead convenor of Rice Watch and Action
Network (R1).
R1, a coalition of farmers and non-government organizations,
also criticized the World Bank for pushing the country further to the pits
because of its straight-jacket neo-liberal approach of liberalized trade that
will not work particularly now when even the top exporters of rice like Vietnam
and Thailand refuse to release their precious supply into the world market.
"The World Bank and Yap’s prescriptions are outright
ineffective because these will not bring down domestic prices given the
skyrocketing prices in the world market. Worse, this kind of intervention
clearly denies the government of its needed revenue to support rice production
and the rice farmers. On the other hand, the public will continue to suffer from
high prices of rice while the traders are given another opportunity to gain from
this crisis," said Cantos.
Cantos said the current price at $747 per metric ton of rice
in the international market will end up at P32 per kilo in the local market with
the tariff reduced to 0 percent and giving the rice trader only 10% margin for
packing and hauling expenses.
R1’s computation of the effect of the current world market
price and the corresponding tariff reduction showed that the 40 percent tariff
will result to P46 per kilo of imported rice in the local market, 20 percent
tariff will end up at P39 per kilo and 10 percent tariff will lead to P36 per
kilo of rice in the local market.
"Allowing genuine farmers groups to import rice would be
ideal so that the farmers will be able to recoup their losses from the shortfall
in their production and be able to benefit and not harmed by the competing rice
supply from importation," said Cantos.
Cantos said the key issue in allowing genuine farmers groups
to directly import rice is their capacity in terms of capital, management and
competitiveness in the midst of a rice industry that is held in the neck by
regional cartels and smugglers. She said the rice industry really needs an
overhaul before it can benefit the poor rice farmers.
"We urge the agriculture department to strengthen their regulatory powers
through the National Food Authority while running after corrupt agriculture and
NFA officials found to be in cahoots with unscrupulous traders. The people are
suffering due to this government’s neglect of the rice industry and rural
development. The challenge lies on the President and Yap. Prove that there is no
rice crisis and bring down the prices of rice in the market," Cantos added.
