THE National Food Authority Council (NFAC) could approve the Philippine International Trading Corp.’s (PITC) proposal to import rice on the condition that it will use its own funds instead of tapping money from the private sector, the agriculture chief has said.
Agriculture Secretary Emmanuel F. Piñol, who is also chairman of the NFAC, told the BusinessMirror that the PITC’s proposed rice importation was tackled by the council on Monday and eventually deferred as it was deemed disadvantageous to other
accredited importers.
Under its proposal, the PITC—a government-owned and -controlled corporation attached to the Department of Trade and Industry—would only serve as a consolidator and that private firms would finance the imports, which would be shipped at zero tariffs, according to Piñol.
“Actually, the NFAC said it will allow the importation if PITC funds are used,” he said via SMS. “Because if it would be the private investors, then the distribution of rice will not be controlled. Plus, they will also not pay tariffs.”
Piñol said the NFAC asked the PITC to revise its proposal and resubmit it to the council.
The NFAC did not give the PITC a deadline but, in case they resubmit their proposal, it would be taken up immediately, he said.
Furthermore, Piñol pointed out that existing laws are clear that the authority to import rice is vested in the National Food Authority (NFA). “The law is very clear that all rice importation could only be done through the NFA,” he said.
The power to import rice and regulate its entry to the local market is vested in the NFA by virtue of Presidential Decree (PD) 4, which created the National Grains Authority, the forerunner of the NFA.
Furthermore, Republic Act 8178, or the Agricultural Tariffication Act, amended PD 4 and gave the NFA the power to delegate the authority to import rice to accredited traders and importers.
However, Presidential Spokesman Harry L. Roque Jr. on Tuesday announced that the PITC had already conducted an open tender for its rice imports that are expected to arrive in two weeks’ time.
Furthermore, Roque said the PITC’s rice importation did not need the NFAC’s approval.
“This importation doesn’t need the [NFA] Council’s approval. This information was given by [Trade Undersecretary] Ruth [Castelo] to the President in Benguet, when we visited Benguet,” Roque said.
“And [Undersecretary] Ruth said that they imported rice of 25-percent brokens, which is sold [by the NFA] at P27 per kilogram,” Roque added.The DTI proposed earlier this month to allow the PITC to import about 150,000 metric tons of rice to beef up the NFA’s current stockpile.
Image credits: PNA