NFA asked to revise rice import rules

Several farmer groups in the south expressed yesterday their opposition to the present guidelines being employed by the National Food Authority (NFA) concerning its proposed program for local farmers to act as rice importers.

Datu Michael Abas-Kida, representative of the National Confederation of Irrigators’ Association-Autonomous Region of Muslim Mindanao, said that though they are open to this proposed rice importation by the sector, they still fear that major rice traders will most likely end up getting the bulk of the import allocations in view of the 10,000 metric tons volume ceiling set in the guidelines.

"We believe that a letter of credit (L/C) which is being required of farmer-cooperatives through the facilitator Land Bank of the Philippines, is not necessary since this will just disadvantage small farmers. We can have direct transactions with foreign suppliers," Abas-Kida who is also regional president of the Upper Makir Multi-Purpose Cooperative, said.

It is estimated that the country will have to import a total of 800,000 metric tons of rice for 2003. The NFA last December 2002 came up with the rules and regulations governing farmers’ and private sector’s participation in rice importation for 2003.

The guidelines stated that the opening of LC will be the basis for the issuance of import permits and only LC at the Land Bank of the Philippines (LBP) will be accepted. As the principle of the first-come, first serve basis will be followed, the LBP shall cease issuing L/Cs once the NFA prescribed volume per quarter has been fully served.

However, Abas-Kida argued said farmers especially the small ones do not have the financial capacity nor the qualifications to meet the stringent criteria set by the LBP for financial assistance.