A non-governmental organization (NGO) on Friday warned the National Food Authority (NFA) against pushing through with its plans to import more rice under the so-called minimum-access volume (MAV) scheme.
The Rice Watch and Action Network (R1) said allowing the private sector to bring in an additional 805,200 metric tons (MT) of rice under MAV would be “disastrous” for local rice farmers.
“We all know that oversupply of imported rice will spell the death of livelihood for our local rice farmers. The traders will exploit this situation to drive the farm gate prices of palay at its lowest possible rate,” Lead Convenor of R1 Aurora Regalado said in a statement.
The NFA has already imported a total of 750,000 MT of rice earlier this year. Including the 250,000 MT reserve volume on standby, the 805,200 MT private-sector importation under the MAV scheme, and the 300,000 MT of rice imported under MAV in December last year, this adds up to a total of 2.1 million MT of rice-importation plan for 2015.
Rice imports that fall within the MAV are slapped a lower tariff of 35 percent.
NFA Administrator Renan B. Dalisay said the government has not yet decided on putting on hold its purchase of an additional 250,000 MT of rice from foreign sources. The government is also not suspending the rice-importation scheme under MAV.
“As of now, the importation under MAV will push through. Based on my own estimate, private traders have applied for permits to bring in some 200,000 MT,” Dalisay said in a text message to BusinessMirror.
Dalisay said the NFA’s total rice inventory is currently at 773,038 MT, which is sufficient for 25 days. He said this is below the 30-day buffer stock, which the NFA must maintain during the lean months of July, August and September.
For the week ending July 17, the Philippine Statistics Authority (PSA) said prices of regular-milled and well-milled rice remain stable.
“Prices were generally stable although movements in two trading centers were noted,” the
report read.
In Tacloban City, PSA data showed that the price per kilo of well-milled and regular-milled rice dropped by P2 each. The report also noted that the prices of special rice and premium rice declined by P5 per kilo and P1 per kilo, respectively.