The Department of Agriculture (DA) will be looking into how their plans to remove the brand labels on imported rice would affect regulation of prices when it comes to selling it wholesale or retail in markets.
In an exclusive interview at Balansyado, Assistant Secretary Arnel de Mesa detailed how DA Secretary Francisco P. Tiu Laurel Jr. saw the underlying problems with imported and local rice.
"Halimbawa may nakita doon, imported nga na alam natin ang presyuhan, yung landed cost ay nasa a little over PHP 40 lamang. Pero nung tinitinda, nasa PHP 60 plus. Ang nakita agad dito ay posible na mayroong pang-aabuso doon sa labeling or categorization ng ating mga bigas. Lalo na yung nabibilang sa premium at special," de Mesa said.
Imported rice is categorized according to certain degrees, depending on what is considered broken. However, as Sec. Laurel mentioned, some retailers and traders are intentionally confusing Filipino consumers. De Mesa stated that retailers use branded imports to justify the high prices of rice.
Due to that, Laurel ordered the removal of labels like “premium” and “special” on imported rice. As a way to protect Filipino farmers and traders, locally-produced rice will be exempted from this rule.
What Happened?
De Mesa said that there were revisions made to the Rice Tariffication Law, as the National Food Authority (NFA) were stripped of the responsibility to work closely on the imported rice labels.
"Kung titingnan natin after the rice tariffication law, nawala na yung pag-usisa ng NFA sa ganitong klaseng labelling or standardization kasi ang natira na lamang na function ng NFA ay yung buffer stocking at yung pagbili ng palay sa ating mga magsasaka," de Mesa said.
"Kaya malaking problema itong regularisation ng pagtitinda ng bigas," he added.
With the new order, de Mesa advised consumers to clarify the actual prices of the rice in public markets.
High Prices and the Lack of Regulation
Aside from the markets, Laurel also saw how high the rice prices are in supermarkets and grocery stores. The DA's order would allow them to carefully study how branding affects the prices.
"Pag-aaralan [nating] mabuti kung paano makakaapekto yung branding. Pero ang gusto kasi ni Secretary ay maalis yung branding. Ito ay para lamang sa imported [rice]. Doon sa lokal natin, gusto nating kumita talaga yung mga magsasaka," de Mesa said.
"Pero sa imported, 'yan kasi ay privilege na binibigay natin sa mga importers. Hindi 'yan karapatan talaga. Kinakailangan na magkaroon talaga ng regulasyon at makita na talagang walang pananamantala dito sa mga imported na bigas," he added.
De Mesa highlighted how quantitative restriction was removed from their sector's responsibilities, a very crucial part of the process. He said that one of the main problems is the lack of regulation when it comes to wholesaling and retailing.
"Ang nakikita talagang problema dito yung kakulangan sa regulasyon pagdating sa wholesaling, sa retailing ng ating bigas. Wala na kasi masyadon tumitingin dyan," de Mesa.
The NFA and DA’s Plea
According to de Mesa, the only function left for the NFA to do is the buffer stocking and purchasing of rice from local farmers. He noted that the buffer stocks can only be used during calamities, as the Department of Social Welfare and Development (DSWD) and Local Government Units (LGUs) are the only ones permitted to purchase it.
"Kaya noong huling hearing sa Kongreso na inattendan mismo ng ating kalihim, ay hiniling niya mismo sa ating mambabatas na kung pwede ay ibalik muli yung mga ganitong kapangyarihan at awtoridad sa National Food Authority o sa DA, para magkaroon halimbawa sa regulasyon, pangalawa sa market intervention, kasi nawala 'yan parehas sa NFA," he said.
The DA's Priority
According to de Mesa, rice importation is the DA's second priority, as rice production and market intervention are on top of its list.
"Yung importasyon actually, hindi naman talaga yon prayoridad ni Secretary Tiu Laurel Jr. Ang priority talaga yung mapalakas yung produksyon unang-una,” he said.
“Pangalawa, maayos lang yung mga ibang kapangyarihan ng NFA para talagang magkaroon ng market intervention kung kinakailangan, sa panahon na mayroong emergencies, pagtaas ng presyo at kulang na supply, at yung magkaroon ng tamang regulasyon sa merkado," he added.
For now, the DA will be coordinating with the Department of Trade and Industry (DTI), alongside the Bureau of Internal Revenue (BIR) of the Department of Finance (DOF), to look into the rice prices and transactions.
