Lower rice prices seen

Economic managers and government officials have assured consumers that the deregulation of rice trade in the country would fast-track the availability of affordable rice in the market before the year ends.

Officials of various agencies involved in the implementation of the newly enacted rice import liberalization law held a rice forum on Monday to explain the guidelines for would-be traders who would want to enter the rice trade.

Trade Secretary Ramon Lopez said that following the new importation process and the implementation of the Ease of Doing Business Act last year, the arrival of rice imports would be cut to “28 days at the most” or two weeks faster compared to the old process.

This involves the application of phytosanitary permits from the Bureau of Plant Industry, inspection and payment process from the Bureau of Customs (BOC), and berthing applications from the Philippine Ports Authority (PPA).

Under the new law, the National Food Authority (NFA), which originally manages import applications, would be limited to handling the country’s buffer stocks.

Assistant Secretary Mercedita Sombilla of the National Economic and Development Authority said this was a welcome development for traders and consumers who had to endure longer processes before.

She added that under NFA’s G2P (government-to-private) importation, shipments arrive between two and three months while the G2G (government-to-government) importation—presumed to be faster and should only take a month—has never followed the timeline due to other factors, including port congestion and inclement weather.

Asked how the new law would prevent the same problems that hindered old importation processes, the official said the BOC and the PPA would prioritize the unloading of imported rice.

“We have to help each other,” she said. “A whole government approach is needed to make this law work.”

An Inquirer source said the majority of the rice imports entering the country was still part of NFA’s last issuances of permits, but noted that many importers had already filed their applications.

Based on NFA’s estimates, about two million metric tons of imported rice are expected to enter the local market, which economic managers said would bring down retail prices of rice.

The Department of Agriculture, for its part, said it was not worried that the unimpeded importation of the staple would cut the country’s own production since 95 percent of the country’s rice requirements still came from local farmers.