NFA Council orders release of rice import permits

MANILA, Philippines - The interagency National Food Authority Council has ordered the signing of all import permits for the remaining volume of rice under an earlier private sector-led importation for additional buffer stocking.

NFA Council chairman and Cabinet Secretary Leoncio Evasco directed NFA administrator Jason Aquino to refrain from being selective towards his favored importers and instead sign all the remaining import permits under the minimum access volume (MAV) scheme.

“We directed Aquino to sign the remaining import permits covering 54,000 metric tons (MT) of rice under the 2016 MAV scheme that has long been stuck in the country’s various ports,” Evasco said.

The NFA Council also asked for the immediate publication of the resolution extending the importation until June 30 for the additional 20,000 MT.

Data from the Bureau of Customs showed that Aquino defied the council’s order and instead selectively signed only 14 import permits covering 17,270 MT.

“The document also revealed that Aquino only signed import permits with port of destination outside Manila such as Cebu, Davao, Cagayan de Oro and Poro Point La Union,” Evasco said.

The favored companies are Pilmico Foods Corp., Farm Mechanism Resources and Distribution Corp., All Seasons Federation of Cooperatives, Veneracion Farmers and Urban Poor Association Inc., Antipolo Minalabac Farmers Association Inc., Purita Trading and Central Luzon Federation of Agricultural Cooperative.

“So much delay has been caused that the rice stocks that arrived as early as February are already at high risk of deterioration since milled rice is only good to last for six months,” he said.

Evasco said Aquino’s inaction and continued disobedience to the council’s directive has caused huge economic losses to legitimate importers who have to continue paying demurrage and other storage fees while waiting for their permits to be signed.

“Worst, it has also put them at risk of having their rice seized and made liable for agricultural smuggling,” he said.

To recall, the NFA council approved to extend the MAV arrivals until March 31, from the original deadline of Feb. 28, but Aquino decided otherwise.

“Further delay on this action similar to what has been done, will likely cause a similar scenario like the previous extension considering there is less than two months before the new deadline of arrival for the remaining import allocation,” Evasco said.

“The resolution to proceed with the remaining import quota is aligned with the desire of the President to alleviate the rice supply and avoid price inflation, however this lack of cooperation from the involved agencies is hindering this program and defeating the purpose,” he said.

The MAV refers to the volume of a specific agricultural product that is allowed to be imported with a lower tariff as a commitment of the Philippines under the provisions of the General Agreement on Tariffs and Trade of the World Trade Organization.

The annual MAV importation is being shouldered by the private sector.