AP FILE PHOTO
MANILA, Philippines–A consumer group on Sunday called on the Department of Justice (DOJ) to spearhead a review of the government’s rice importation policies and procedures.
In a statement, Action for Consumerism and Transparency for Nation Building (Action) said “a re-examination of the government’s regulatory policies towards the importation of rice is clearly overdue.
“Unless the legal loopholes are plugged, legitimate importers will be at the mercy of the whims of some government officials tailoring their interpretation of the law according to their own agenda/gains,” Ryann Baccay, director of Action said.
Action said the DOJ’s review “should include the National Food Authorities’ (NFA) allowable rice imports in the country under the quantitative restriction (QR) quotas of the government, the private sector quota, the government to government rice trade, but should also recognize the rights, as well as, opportunities given to farmers’ cooperatives to import rice.”
While the NFA allowed farmer cooperatives to import rice (on the premise that they are the ones to be inadvertently affected by the entry of cheaper rice import thus needed to be protected), the government must have forgotten to give the farmers credit facilities to allow them to participate in the importations by themselves, the group said.
Due to the volume of imports which needs huge capital, farmer cooperatives since year 2003 are forced to look for financiers or investors to avail themselves of the earning opportunities via rice importations, or worse, sell their import quota.
“This system which was allowed and “encouraged” to flourish for more than a decade, by no less than the government thru the NFA has attracted some legitimate businessmen forging agreements with some farmer cooperatives.”
But, Action noted, it has also been subject to abuse by smuggling syndicates.
Action said, as it is, no specific restriction or legal obstruction that will prevent cooperatives to seek private financing or joint-venturing to benefit from their import quotas as long as they follow all the requirements of the NFA and the Bureau of Customs (BOC). Vice versa, there is also no impediment for some minor importers from cooperating or conducting business with farmer cooperatives.
“Had the rules been clearer and definitive, legitimate businessmen would not have ventured into such,” Action added.
Action also called on the Senate (presently having an inquiry into rice smuggling) to pass necessary laws that will address the import problems of the cooperatives. The group also committed to support reforms that are underway, to eradicate not just smuggling of rice but other commodities as well which will affect the competitiveness of local farmers.
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