Wrong policy

On Feb. 7, Alyansa Agrikultura and R1 (Rice Watch Action Network) had a press briefing on the rice smuggling issue.

This time, they protested the recent move of the National Food Authority to open up rice importation to the private sector. They decried the continuing government insensitivity to the plight of poor rice farmers.

Spokepersons were Jaime Tadeo of the National Rice Farmers’ Council and Trining Domingo of the Rural Women’s Congress.

It is instructive to note the pattern of the three briefings on rice smuggling.

In the first held on Dec. 19, 2013, they decried the Bureau of Customs’ announcement that it would release the smuggled rice back to the smugglers because of a faulty Davao court injunction. They said BOC should use all means necessary to prevent this. It was later found out that the Davao court had no jurisdiction to issue the injunction.

In the second held Jan. 17, they strongly objected to BOC’s actual release of the smuggled rice. In addition, Tadeo lodged a case in the Supreme Court against Davao Judge Emmanuel Carpio for the faulty injunction he ordered. They charged Carpio with “gross ignorance of the law,” partly because the government did not get the opportunity to present its position.

Domingo filed a case on the same day charging Atty. Edmund Jesus Dy Buco with “conduct prejudicial to the best interest of the service.”

Dy Buco was not authorized to give the government position, and in addition, even gave the wrong one.

So far, Tadeo and Domingo have not gotten feedback on the charges they filed.

The third briefing talked about how rice farmers were incredulous that the NFA would open up rice importation to the private sector. You would think that after massive media coverage and the numerous Congressional hearings showing private sector importation as the main culprit behind rice smuggling, NFA would discontinue this policy.

Instead, NFA did the opposite!

On Feb. 22, 2013, a Covenant of the Multi-sectoral Groups of Rice Industry was signed and was witnessed by Agriculture Secretary Proceso Alcala and NFA Administrator Orlan Calayag.

So what happened to covenant? Rice farmers ask.

It is argued that NFA had no choice but to announce last week the importation of 163,000 metric tons of rice. It is true that we are obliged to allow rice importation under the World Trade Organization (WTO) agreement of a Minimum Access Volume-Country Specific Order (Mav-cso) for 2014.

But the WTO agreement does not require the private sector to do the importation. As a matter of fact, NFA used to do this.

The private sector rice importation policy started because of two alleged reasons: (1) NFA would save the government money if the private sector did the importation, and (2) NFA would lose too much money if it did the importation and sold it to the public.

Both arguments are faulty. If NFA bought the rice today, it would make money. And if it sold the rice quickly, the NFA resources would remain intact.

On the other hand, if the private sector does the importation, rice smuggling will continue. Unscrupulous elements will use these permits and recycle them to smuggle even more rice. They may also continue exploiting underfinanced small farmer cooperatives, making them their fronts.

Given the BOC’s weak monitoring and enforcement system, opening up a small window for private sector importation may well open the floodgates for rice smuggling to flourish. But if only NFA can import rice, then all private sector rice importation will automatically be considered smuggled.

Identification and enforcement can then be easily carried out to help the farmers.

(The author is chair of Agriwatch, former Secretary for Presidential Flagship Programs and Projects, and former Undersecretary for Agriculture, Trade and Industry. For inquiries and suggestions, e-mail [email protected] or telefax 8522112).