DA nixes bid to import palay on risk of pests

THE Department of Agriculture (DA) has thumbed down the proposals of some firms, such as San Miguel Corp. (SMC), to import unhusked rice or palay to avert the entry of foreign pests that could affect the local rice industry.

“We will not allow the importation of palay—of unhusked rice—because this could pose danger [to our local rice]. Importing palay could bring in pests and diseases to the country,” Agriculture Secretary Emmanuel F. Piñol said in a news briefing on Tuesday.

Piñol made the pronouncement after conglomerates, such as SMC and other companies, signified interest to import palay after the government liberalized the rice industry.

Piñol argued that the DA has the right to block importation of such agricultural commodity to ensure that the local rice industry would not be endangered. “We still reserve the right and hold the power to ensure that imports are safe.

We are invoking our right under the WTO [World Trade Organization] to do such,” he said.

“We reserve the right to protect the local industry. And we still have powers over sanitary and phytosanitary measures, and we invoke that,” he added.

Piñol said DA technical staff have long recommended blocking such importation due to risks posed to the local rice industry.

The agriculture chief disclosed some firms had wanted to import palay even before the rice trade liberalization (RTL) law was enacted. Piñol did not name the firms.

Piñol said it is lucrative for some firms to import palay instead of milled rice as it has a longer shelf life and could utilize the bran as a raw material in manufacturing animal feeds.

“It is a risky proposition. But we are not stopping them from importing milled rice,” he said.

Last year, SMC expressed interest to venture into the rice trade by importing palay abroad and milling it locally as it has the capacity and equipment to do such.

Palay was included in the rice products that were liberalized by the RTL law as it is under the tariff heading of 10.06.