Another myopic bill – that granting the Department of Agriculture the task of directly importing rice just because the substantial reduction on tariffs on rice imports did not lead to reduced retail prices of the staple– is being eyed at the Lower House, which could lead to a split personality for the DA.
The DA is basically tasked with protecting and supporting the farmers from production to marketing, but has miserably failed in this mandate, which led to the near collapse of the local industry.
In the past, the DA through the National Food Authority was the sole importer of grains and other foodstuff (which also created NFA and the Food Terminal Inc.). However, this has led to rampant corruption and the depletion of the country's foreign exchange reserves, forcing the tandem of World Bank and International Monetary Fund to make the divestment of NFA's exclusivity in rice importation a condition for numerous aids and grants to the country.
The exclusivity of NFA's rice imports also led to a rice crisis that saw long queues of hungry people waiting to buy the staple at government-imposed ceilings and purchase volume quotas.
Are we now trying to go back to this direction, or have our lawmakers forgotten their recent history during the time of the president's father?
A story by Business Mirror said the proponents of this House bill are: House Deputy Majority Leader Rep. Erwin Tulfo and his relatives in the ACT-CIS Jocelyn Tuilfo, QC Rep. Ralph Tulfo, Edvic Yap and Benguet Rep. Eric Yap, who is set to file this measure today, November 11.
Tulfo said: “the President already lowered tariffs on imported rice for private traders, yet prices remain between P50 and P60 per kilo in the market.”
“Don’t tell me the tariff reduction is pointless. So where are the tariff savings going? Shouldn’t they benefit the people?” he added. (Indeed the tariff cuts were pointless as had been pointed out so many times before by leaders of farm groups).
Tulfo hinted that it appears only importers are benefiting from the current situation, prompting him to say, “we need to act now.”
With this, Tulfo said a bill proposing to give the DA the powers needed to import rice that would be sold in the market will be filed.
In the proposed bill, at whatever price the DA purchased the imported rice from other countries, it should also be sold at the same price in the market in the Philippines.
“Since the DA currently cannot sell rice directly, we will include in the proposal that interested rice retailers may apply to become licensed Kadiwa outlets under the DA,” Tulfo explained.
“We thought prices would go down with the tariff cut, but it turns out the profit only goes to the importers,” Tulfo remarked.
Tulfo said that once the DA is authorized to import rice regularly, it will create competition for private traders, effectively pressuring them to lower market prices.
He added that their bill also proposed that during the harvesting season of rice, the DA should stop issuing import permits for rice in order to protect the locally manufactured rice and the interests of the local farmers.
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