|
RICE
importers are apparently playing a waiting game—making
sure the presidential order removing the tariff on rice
imports has been issued and becomes effective before
moving to import the staple although a rice shortage has
begun to emerge, the very situation the tariff removal
wanted to avoid.
The wait
could also disadvantage the Philippines since exporting
countries are beginning to impose quotas for exports in
order to protect their own domestic needs, making the
volume of rice available for export much smaller all
around—and leading to soaring prices worldwide.
Why the
order has not become effective remained unanswered as of
Wednesday. Agriculture Secretary Arthur Yap clarified,
though, that the government has not lifted the
quantitative restriction (QR) on rice. Yap said the
government merely wanted to encourage the private sector
to help it out in importing the commodity.
The QR
is a safeguard mechanism allowed by the World Trade
Organization. It is the volume the Philippine government
will allow to be imported at reduced tariff.
Philippine Confederation of Grains Association (Philcongrains)
chairman Herculano Joji C. Co, said they have yet to see
an order from Malacañang or from any government agency
allowing them to import rice at zero duty.
The
private sector is thus not yet keen on the idea of
joining the government in importing rice. “We have to be
certain that we will not pay the tariffs. We should have
something to show the Bureau of Customs. The government
should release the order first before we determine if
it’s really viable.”
National
Food Authority (NFA) administrator Jessup Navarro said
the government will allow the private sector to import
300,000 to 600,000 tons at zero duty, a volume that
already includes what farmers’ groups can also import
tariff free under the Farmers As Importers program.
Navarro
said that under the plan, importers pay only P2 per kilo
service fee instead of the 50-percent tariff.
The
World Bank urged the government, meanwhile, to
facilitate the cooperation of the private sector in
importing rice for lower prices faster and ease the
financial import burden on the government.
World
Bank country director Bert Hofman told reporters that
allowing the private sector to participate in importing
rice would also increase tax revenues and could open
other ways to lower transportation costs.
“While
the National Food Authority imports are targetted to
achieve cheaper rice prices, their deficit becomes
larger,” said Hofman after the open forum on the
briefing for the opening of the Panibagong Paraan 2008.
World
Bank Rural Development, Environment and Natural
Resources Cluster Operations officer Felizardo Virtucio
Jr. said the country annually imports 2 million tons a
year. With world market prices near $700 per ton, this
would automatically mean a $1.4-million loss for the NFA.
He said
this cost is also seen to increase this year since the
government intends to import around 2.4 million tons
which means the NFA would lose $1.68 million. “Allowing
the private sector to import would lower the fiscal
burden on the government.”
Before
the Arroyo order, only the NFA is allowed to import
rice. In 2006, the NFA imported 1.62 million tons, which
were sourced from Vietnam, Thailand, Pakistan, China and
the United States.
The NFA
imported the highest volume of rice from Vietnam with
1.38 million tons followed by Thailand at 123,950 tons;
US, 65,185 tons; Pakistan, 32,550 tons; and China,
24,880 tons. |
