Unlimited rice importation takes effect today
The guidelines that will pave the way for unlimited rice importation has already been approved and signed by the NFA Council, the highest policy making body of the National Food Authority (NFA).
This effectively allows everyone to apply for import permits and purchase rice abroad.
The guidelines came a day before the bicameral conference committee was set to take up the Rice Tariffication Bill and consolidate the House and Senate versions of the law.
The Rice Tariffication Bill seeks to amend Republic Act (RA) No. 8178 or the Agricultural Tariffication Act of 1996, which will replace the quantitative restriction (QR) on rice imports with a specific tariff rate.
Supposedly, its passage would usher in the entry of more imported rice in the country.
However, the NFA Council already signed on Wednesday the guidelines on “out quota importation” on rice, which would also have the same outcome as the Rice Tariffication Bill.
Agriculture Secretary Emmanuel Piñol said that, starting today, anyone who is interested to import rice could already apply for a permit from the NFA.
“The purpose of importation is to bring down the prices of rice. Bakit ko hihintayin (Why will I still wait for the passage of Rice Tariffication Bill)? Paano kung tumagal pa yan? Magrereklamo na naman kayo pag tumaas ang presyo ng bigas (What if it will still take time for it to be passed? People will again complain if the price of rice shoots up),” Piñol said when asked about the timing of the guidelines’ issuance.
Under the out quota importation, anyone can import rice as long as he or she has the financial, warehousing, retailing capacity to do so.
“There are guidelines on who would qualify to import. We will be very strict in the implementation of the evaluation on the financial capability of the importer, his warehousing capacity and his retailing capability,” Piñol said.
“These will effectively weed out fly by night importers who would apply for permits and then would just sell it,” he added.
It was just on Wednesday when the NFA secured five foreign suppliers for the 500,000 metric tons (MT) of rice it has been authorized to import. Next week, the NFA will also bid out supply contracts for another 203,000 MT of rice through a government-to-government procurement scheme.
Piñol said that if this bidding would be successful, the NFA will have additional 750,000 MT of additional stocks.
With the out quota importation, the amount of imported rice that will enter the country throughout the remaining part of the year could further shoot up.