More rice imports arriving

As the Philippines moves toward the unlimited importation of rice, more than 500,000 metric tons (MT) are expected to enter the country after 90 private traders applied to bring in the commodity under the out-quota scheme.

Based on the updated list released by the NFA, 90 firms have already applied for the out-quota importation of 572,278 MT of rice to be sourced from Vietnam, Thailand, Myanmar and Taiwan.

Last month, the interagency National Food Authority Council (NFAC) allowed the unlimited importation of rice in a bid

to further stabilize the market ahead of the bicameral conference committee for the rice tariffication.

The out-quota allocation means traders can apply for any volume of imported rice they would want to bring into the country.

Of the initial volume, the imports will be discharged in Manila, Subic, Cebu, Zamboanga City, Davao, La Union, Tacloban and Cagayan de Oro.

The NFA will continuously process and approve applications of private traders.

Earlier, Agriculture Secretary Emmanuel Piñol said importers could only bring in 25 percent brokens, but the latest terms of reference for the out-quota scheme allows traders to import 25 percent brokens or better.

All rice to be imported will be levied with a 35 percent tariff for Association of Southeast Asian Nations (ASEAN) countries and 50 percent for non-ASEAN.

Rice import allocation of eligible importers must be loaded upon the approval of the sanitary and phytosanitary import clearance by the Bureau of Plant Industry and payment of the required tentative advance Customs duty.

The out-quota imports would add to the recently bidded out 500,000 MT via open tender and the 203,000 MT government-to-government scheme.

The agri chief allayed fears that this move would cause the influx of imported rice into the local market.

“I don’t think that’s going to happen because when the importers would feel there is so much rice stocks in the market and prices would go down to a level where they cannot make money anymore, then they would not import,” Piñol earlier said.

“It will be the absorptive capacity of the market that will set the cap. And no businessman in his right mind will import rice if there is no market,” he said.