An executive order allowing private sector to import rice will soon be out, Department of Trade and Industry Secretary Ramon Lopez told reporters Monday.
On the sidelines of the 18th Regional Comprehensive Economic Partnership (RCEP) Trade Negotiating Committee and Related Meetings, Lopez said Malacañang Palace would release an EO regarding the country’s policy on importing rice before or by July this year.
He said it was discussed to President Rodrigo Duterte in a recent meeting the advantages of allowing the private sector to import rice rather than the government-to-government (G2G) scheme, which only the National Food Authority (NFA) will monopolize rice importation.
“We let the private sector also import. They know the market and the timing of importing rice,” the trade chief said in Filipino.
Lopez added that the government would also gain revenues from the 35 percent tariff on rice if it allowed the private sector to import the staple food.
In G2G scheme, the government has to fund the importation.
Also through the scheme, the government loses if it has oversupply of rice, as it tends to sell the commodity at a lower price. Because of this, the government had a loss of about Php 200 billion in the past, according to the official.
But the Cabinet member noted that allowing the private sector to import rice will not result to flooding the market with imported rice, as doing so will only push the prices of the commodity to be cheaper.
Lopez added that the quantity to be imported shall be based on the shortage of domestic supply. (PNA)
