DA blocks plan to import palay
Even with the liberalization of the rice industry, the government will not allow the importation of palay (unmilled rice), effectively blocking plans of some firms, including conglomerate San Miguel Corp., to bring in the commodity.
Agriculture Secretary Emmanuel Piñol said the agency would invoke its right against the importation of palay amid threats from pests and diseases.
“We will not allow the import of palay. This has long been recommended by our technical people even before the passage of the rice liberalization,” Piñol said in a briefing.
“It has been the mindset of the DA. We will not stop them from importing rice in its milled form, but not for palay. It is a risky proposition,” he added.
Even if Republic Act 11203 or the Rice Import Liberalization Law officially took effect, Piñol said the power to issue sanitary and phytosanitary (SPS) permits remained with the DA.
“We still reserve the right to protect the industry, we have the power on the SPS and we can invoke that,” Piñol said.
It was in September 2018 when food-to-infrastructure conglomerate San Miguel Corp. expressed interest to import unmilled rice to help augment the supply of the country’s main staple.
SMC was only waiting for the passage of the rice tariffication bill, which seeks to eliminate government’s control over the volume of rice imports, and just allow market forces to come into play.
Ang earlier said SMC has grain terminals and facilities used for their feed mills, which could have extra silos to properly store imported rice, including unmilled rice.
SMC can import from Cambodia, Vietnam and Thailand. It can also enter into long-term supply contracts. The conglomerate was also willing to help farmers by buying their produce.
Meanwhile, the implementing rules and regulations of the rice liberalization law has yet to be signed and released, more than a week after its effectivity.
Piñol said the National Economic and Development Authority is crafting the final version which will be coursed through a referendum.