Industry group wants safeguards in place once QR on rice lifted

The Samahang Industriya ng Agrikultura (Sinag) is calling on the government to implement strict measures and craft a comprehensive program once the quantitative import restriction has been replaced with tariffs.

As lawmakers finalize the amendments to the Agricultural Tariffication Act, Sinag said the government should institute a mechanism that will protect the local rice industry against import dumping, import surges and global price discrimination.

“Promoting rice self-sufficiency and a significant increase in public spending in critical and strategic segments of the rice industry is the only option viable for the local rice industry given the relatively thin global rice market and the onset of extreme weather situations,” Sinag said.

Global rice production is pegged at 470 million metric tons (MT), of which 39 million to 42 million MT are tradable. This means that less than 10 percent of the rice produced globally is available in the world market.

The group said it supports the Senate’s plan to impose up to 50 percent duty on imported rice.

Sinag also urged the Senate to increase tariff on pork offal, pork fats and mechanically deboned chicken meat to 40 percent from the current five percent.

“The revenue generated from rice import tariffs should exclusively be allocated in implementing a comprehensive government program across the whole supply chain of the rice industry that will re-develop our capacity to produce our own staple and food requirements,” Sinag said.

Lifting of the QR is expected to give the government an additional P25 billion in revenue.

The group also expects the government to fully implement recently passed laws that will strengthen anti-smuggling efforts and regulations governing quarantine and food safety regulations and sanitary and phytosanitary measures.

Sinag said lifting the QR should result in the imposition of stringent measures in the accreditation, monitoring and issuance of import permits of rice importers and the strengthening of the regulatory function of the National Food Authority as the sole importer of rice.

The WTO granted the Philippines an extension of its QR on rice importation until June 30, 2017 to allow local farmers to prepare for free trade.

QR is a non-tariff measure that limits the volume of imports of a specific product.