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HONG
KONG (via PLDT)—The government has thumbed down a
reduction in rice tariffs and is, instead, reviewing a
revenue-neutral “fee system” that would attract private
sector participation in rice importation.
President Arroyo said in a pooled media interview in her
suite at the Grand Hyatt Hotel here on Tuesday that her
economic managers have concluded that reduced rice
tariffs would not generate private-sector interest in
rice importation.
“We
discussed tariff reduction but they [economic managers]
were saying that even if you cut tariff, the price of
rice is so high in the world market, the private sector
will not import. So what will happen is you just end up
reducing the government revenues because there was no
increase in importation. So it seems that the cut in
tariff is not a practical solution,” the President said.
Agriculture Secretary Arthur Yap told reporters that
instead of reduced rice tariffs, which would incur
revenue losses without substantial gains in return, the
government will pursue what it deemed a more viable
alternative.
“The
economic managers are studying a scheme wherein we are
not going to touch tariffs and yet we’ll find a way we
can make it still attractive for the private sector to
import rice through a fee system without touching the
tariffs; and that is being reviewed by [Finance]
Secretary [Margarito] Teves,” Yap said.
Through
the proposed scheme, “importation can still be done by
the NFA through a tax expenditure-subsidy scheme and the
volume that NFA brings can be turned over to the private
sector to buy and to distribute on the basis of an
equalization fee that they will bid for.”
The
President will pursue discussions on rice supply with
Thai Prime Minister Samak Sundaravej when they meet in
Malacañang on Friday as part of his Philippine state
visit.
She said
that when she went to
Bangkok
en route to Davos, Switzerland, in January, she had
discussed the matter of rice supply with Thai officials.
“They
said they were willing to supply us. So the Prime
Minister of Thailand will come on Friday to the
Philippines.
We will follow it up with him,” she said.
Mrs.
Arroyo said possible rice imports from Thailand would
provide “an additional buffer to make sure that in June,
when the lean season happens, we have rice at that
time.”
She said
the 1.5 million metric tons (MMT) of rice committed by
Vietnam to the Philippines “will cover” the country’s
needs. The government hopes that of the total amount,
600,000 MT would arrive in June.
The
President also said the government is working toward
“rice security, not necessarily self sufficiency.”
“Apparently our competitive advantage is on other things
and as long as we can earn enough, to be able to afford
the rice coming from elsewhere, that still makes good
economics,” she said.
The
President said the government has been “increasing and
stabilizing the supply of rice and delivering targeted
subsidies to the poor” which are most vulnerable to
price spikes, and has been going after those engaged in
price gouging.
The
President added that the NFA would sell rice, using a
van that would be going around “food-poor” areas and
other depressed communities to ensure that they are
bought by the intended consumer.
Yap said
the NFA would also supervise the selling of NFA rice,
and that Manila Mayor Alfredo Lim has agreed to involve
the
Manila City
government in direct rice distribution starting next
week, providing a model of NFA-local government unit (LGU)
partnership in targeted rice distribution.
The
agriculture chief clarified reports that the NFA’s
decision to sell rice at one-kilo packs signals a
shortage, saying it is meant to deter the diversion of
NFA rice.
“I don’t
see why we should call it rationing or any other name.
The NFA rules have not changed, except this time there
is supervised and direct selling together with LGUs and
civil society groups. That’s being worked on by NFA,” he
said. |
