DA wants another extension of quantitative restriction on rice

MANILA, Philippines - The Department of Agriculture (DA) wants to seek another extension of the quantitative restriction on rice up to 2015.

This was disclosed by National Food Authority (NFA) Administrator Angelito T. Banayo who supports the DA’s position.

However, Banayo also said that the Department of Budget and Management (DBM), on the other hand, has some doubts about a further QR extension, given its impact on the national budget as Government would have to continue the subsidy for the importation of rice being done by the NFA.

With the QR, the importation of rice into the country is subject to a 40-percent tariff and duty-free importation is limited to a concessionary amount of only 360,000 metric tons.

The current extension of the QR on rice is set to expire next year, 2012, after being extended an initial seven years from June 30, 2005 when the 10-year rice quota under Annex 5 of the World Trade Organization (WTO) agreement on agriculture expired.

According to Banayo, the NFA and DA have the same position on seeking an extension to prevent the entry of cheap imported rice until the Philippines has achieved rice self-sufficiency.

Agriculture Secretary Proceso J. Alcala is targeting, and remains confident, that the country will achieve rice self-sufficiency by 2013.

However, because Philippine rice production is not yet sufficient to meet consumption requirement, the NFA has to import rice for which the National Government has to allocate budgetary subsidy.