More than 800,000 MT of rice to enter Phl

As the Philippines moves toward the unlimited importation of rice, more than 800,000 metric tons are expected to enter the country after 117 private traders applied to bring in the commodity under the out-quota scheme.

Based on the updated list released by the NFA, 117 firms have already applied for the out-quota importation of 821,918 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.

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

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

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 trad- ers to import 25 percent brokens or better.

All rice to be imported will be levied with a 35 percent tariff for 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 already allayed possible fears of some that there would be a flood of imported rice in the market with this move.

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