The Samahang Industriya ng Agrikutura said Tuesday removing the quantitative restriction on rice will not result in lower prices of the staple food.
Sinag made the statement after the National Economic and Development Authority and economic managers agreed to remove the QR to lower the country’s rice prices.
“Our QR on rice did not limit us to import more rice, in fact-we have been one of the top importers of rice in the last decade or so. This does not even include the flourishing trade of rice smuggling that continue to hound the local rice industry,” Sinag said.
The quantitative restriction on rice allows the country to limit the volume of rice imports entering the Philippines.
The QR on price expired in June 2012, prompting the Philippines to ask the World Trade Organization Committee on Trade and Goods for an extension until 2017.
Earlier, the Philippines under an agreement with the WTO committed to a minimum access volume of 350,000 metric tons of rice with a tariff rate of 35 percent. Rice imports outside the MAV pay higher rates.
MAV refers to the minimum volume of farm produce allowed to enter the country.
The Agriculture Department in 2014 said the WTO approved the QR extension on rice.
Under the new agreement, however, the Philippines would increase the minimum access volume from the current 350,000 metric tons to 805,200 metric tons. Shipments outside MAV will pay a trafiif rate of 50 percent.
“Neda should have consulted the local agriculture industry so it would realize that rice prices are high because the cost of producing rice in the country is one of the most exoensive in the region,” Sinag said.
The group said the cost of production in the Philippines is around P10 to 12 per kilogram compared with P6 to P10 a kilo in Vietnam and Thailand.
Sinag said instead of relying on imports, the government must support rice farmers in the production, credits and insurance coverage, post-production and marketing stage.
“They must also increase the farmgate support of the (National Food Authority) to at least 5 percent of the total palay production,” Sinag said.
It said the government must also give incentives to local rice millers to modernize their milling operations and facilities.
“Neda should also realize that any discussion on the prospect of the local rice industry should look into the world rice market situation and recently, impacts of extreme weather situation as major considerations,” Sinag said.
