NFA puts on hold all applications for rice import program

The National Food Authority (NFA) is temporarily suspending its rice importation program for farmers pending investigation of accredited but alleged fake farmers’ organizations (FOs).

NFA Deputy Administrator Gregorio Tan said the state-run agency has stopped processing all FO applications following complaints by several disgruntled FOs that some of those given licenses are either dormant groups or non-palay/rice farmer-based groups.

"We have stopped accrediting FOs since last week while we are looking seriously at complaints. We are now conducting a probe on the names alleged to be inactive organizations that were just revived to take advantage of the program. Some of the groups are also said to be non-palay based FOs," Tan said. He said the results will be completed next week.

"If the accusations are substantiated, we will not hesitate to cancel the licenses of these FOs," Tan said.

At the same time, Tan said the NFA is reviewing the mechanics of the rice importation program to address other concerns of FOs, particularly the import ceiling or volume.

NFA Administrator Arthur C. Yap said the state-run agency will also ask the Landbank of the Philippines (Landbank) to soften the terms or conditions for the issuance of LCs to FOs. The NFA and Landbank are meeting shortly to come up with revisions on the existing mechanics for the importation of rice.

"For government to increase farmer organization, I am asking that the rules consider lowering the maximum volume allowed for FOs, this way, there will be greater access to the rice imports," said Yap.

Under the program, FOs and farmer cooperatives are allowed to import a total of 400,000 MT of rice which is half of the government’s projected import volume of this year of 800,000.

Since the Landbank started processing LCs last month however, FOs have been complaining that the rules are too stiff for them to comply with since a 10,000 MT requires them to raise at least P170 million.

Local government officials have stepped into the fray, saying that their constituents were shut out and could not get allocations because the Landbank stopped issuing LCs after the 150,000 MT was consumed. There are still about 105,000 MT of standby applications for LCs.

FOs are urging NFA to scrap the first-come-first-served policy in the granting of allocations, and instead, give the state-run agency, the Landbank or any other government body such as the Office of the President, a free hand in determining which entry will be given the allocation.

Meanwhile, the Bureau of Customs warned rice importers yesterday that their shipments would be seized if they are misdeclared.

Deputy Customs Commissioner Ray Allas said that although rice importation is allowed, there are some importers who declare them as raw materials.

Allas said some importers resort to misdeclaration of their shipment to evade taxes and duties as importation of raw materials for the manufacture of finished products for export purposes is tax free.

He cited the two shipments of 82 container vans of rice from Vienam that arrived at the ports of Manila and Batangas that were declared to contain vermicili, a raw material for the production of noodles.

Allas said that the smuggled rice with an estimated value of some P62 million was supposed to be transshipped to customs bonded warehouses from the piers as raw materials when discovered.

According to Allas, the bureau is also coordinating with the Philippine Coast Guard and other government law enforcement agencies to stop smuggling of rice in the high seas. – With Rey Arquiza