Monday, October 21, 2019

21st October,2019 Daily Global Regional Local Rice E-Newsletter



News Detail…

Counting border closure’s cost

Description: Nigeria's borders closure

By Muyiwa Lucas
Mixed reactions have continued to greet the closure of the nation’s borders. While some say it is part of efforts to save the economy from collapse, others say it is an assault on the economy and disregard for the ECOWAS Trade Protocol, MUYIWA LUCAS reports.
For over 15 years, Moussa Qasim, a Beninoise, has been taking advantage of the trade liberalisation policy of the Economic Community of West African States (ECOWAS).
The ECOWAS Trade Liberalisation Scheme (ETLS) adopted in 1979 had opened the way for him to grow his business considerably, given the freedom of movement he enjoys among the countries. And for him, his main marketplace is Nigeria, which he says, takes up over 90 per cent of his products, ranging from agricultural, artisanal handicrafts and unprocessed products, including industrial products. In return, Qasim takes back to his country beverages, and some food items believed to be easily affordable here and more profitable in Benin Republic.
From this cross-border trading, Qasim is able to cater for his family needs, including paying for one of his children’s tertiary education in Europe. But the tide is changing. Since middle of August, when the Federal Government closed the country’s borders across four of the six geo-political zones, business has not been the same for not only for Qasim, but also for several other traders across the sub region.
From comercial motor cyclists, transporters, bureau de change operators, to cross-border traders, the story is the same: biting economy. There are fears that if the border  closure continues, the  Bennoise, Nigeriens and Chadians’ businesses may crumble.
ECOWAS-ETLS
The ETLS is a trade instrument designed by the Regional Economic Community. Article (3) of the Revised Treaty of ECOWAS stipulates the removal of trade barriers and harmonisation of trade policies for the establishment of a Free Trade Area, a customs union, a common market and an eventual culmination into a monetary and economic union in West Africa.
The ECOWAS-ETLS is the main framework for trade and market integration in ECOWAS as it addresses protocols on the free movement of goods, persons and transportation. The ETLS main pursuit of consolidating the free trade area is guided by the National Approval Committees that informs the member states. It is for this reason that the ECOWAS implemented a Customs and Connectivity programme to simplify the movement of goods in the region. The ECOWAS Common External Tariff has thus been operational since 2015. Moreover, member states are increasingly implementing the ECOWAS Single Customs Declaration Form for their customs administrations.
For all products covered under the ETLS, they are granted with concessions like no quantitative restrictions, total exemption from import duties and taxes, non-payment of compensation for loss of revenue for items (i) and (ii) as a result of their importation.
To qualify for admission into the ETLS, such products must originate from the ECOWAS region. The following are the three criteria for admission of products into the scheme: at least 60 percent local content of products, at least 30 percent value addition for products.
The abuse
The ECOWAS-ETLS may have been abused by the country’s neighbours – hence the decision to keep the borders shut. For instance, a top government official in the Seme-Krake border told this reporter that Benin Republic, especially, has been abusing the ETLS’ provosions.
The official, who pleaded anonymity, explained that it is a common practice for importers to bring in goods from Europe, load same back into trucks onward to Nigeria. Such consignment, he explained, are then left to enter under the provisions of the ETLS since there was no way to say they were imported.
Besides, the several cries and warnings of the Federal Government were said to have fallen on deaf ears of the government of the neighbouring country of Benin Republic. But the reluctance of the Franco-phone country can be understood.
Under its rice fortification policy, four multi-national companies and about 30 other smaller importers, including individuals, were said to have been given approval to import foreign parboiled and white rice into the country through Benin Terminal, Cotonou, and Bollore seaport- Benin Republic’s two seaports. The white rice, according to sources, are consumed  within the country while the foreign parboiled rice are exported to Niger and Chad, which in turn, are smuggled into the Nigerian market through the north and southern parts.
The Value News, an online publication,  claimed that it obtained a document showing that African Agro Foods, one of the companies owned by Pan Lebanes Group, has a mandate to ship into Benin Republic 360,000 MT, or 30 percent of the annual  parboiled rice imports; Diefezi Fils Sarl, 300,000 MT; Sonam, a company floated by the Stallion Group based in Dubai, Quatar, having the Presidential nod to import 240,000MT or 20 percent of the total  parboiled rice needed in the country. These are eventually exported to land locked countries or smuggled  into Nigeria.
It further claimed that another Dubai based company, ABC Enterprises, due to its limited financial muscle was said to have been given approval to ship into that country 10,000 MT yearly. This is in addition to 29,000 MT, or 24 percent, allegedly approved for the other group of rice importers through the two seaports in the country. These, it is believed, accounts for why the tiny sub-regional country is flooded with rice. And with a small population incapable of consuming the volume of imports, Nigeria became her ready market.
Qasim, though unable to put a figure to the volume of rice import, nonetheless, revealed that in Benin, the warehouses are filled to the brim with rice, including vessels on its waters loaded with the commodity, but no patronage arising from the border closure. The smaller shops along the Cotonou road and the ones at Seme-Krake Joint Border  between Nigeria and Republic of Benin, were also said to have been filled up waiting for Nigerian buyers, who were nowhere to be seen close the border. Although there are no official cost to goods tied down at the Seme-Krake border, experts said it is not less than N750 million.
Experts and stakeholders blamed Benin Republic for allowing countries like Taiwan to dump foreign parboiled rice in their country and then re-bag such products and smuggle them into Nigeria, taking advantage of the ECOWAS protocol, which allows access to free trade within the sub region.
Last year, Nigeria’s former Minister of State for Agriculture and Rural Development, Heineken Lokpobiri, blamed rice smuggling on ECOWAS-ETLS protocol on free trade. He was unequivocal that the nation’s fight against the smuggling of foreign rice has been frustrated by her neighbours, particularly Benin Republic. He said the country spent up about $5 million for the importation of rice daily, but that through new policy programmes by the ministry and the intervention of partners like IFAD, the figure had reduced drastically.
Such policies like the Anchor Borrowers Programme and Nigerians answering the clarion call of this administration to go back to the farms to produce what her people will eat and eat what she produces, has made the country to be rated as the highest producer of rice and cassava in Africa. Sadly, it is believed that Benin Republic has undermined these policies through being a conduit for smuggling into Nigeria.
Long plan
But the plans to stop this economic haemorrhage had been long thought of. Weeks later, Nigeria’s former Minister of Agriculture, Audu Ogbeh, hinted of the Federal Government’s plan to shut the land border between Nigeria and a ‘neigbouring country’ to avoid smuggling of foreign rice into the country. He had explained that doing so had become necessary to encourage local production and sustain the economy of the country.  He said this also denies Benin citizens the opportunity to grow rice and benefit from the Nigerian market.
“We have engaged the government of Benin Republic, up to the presidential level. The (Nigerian) president had to invite the president of Benin Republic to engage him because we are neighbours; let’s see how we can work together and curb this issue of smuggling,” Ogbeh had said back then.
Benin Republic groans
The effect of the border closure has taken a heavy toll on the Beninoise economy, including economies of other West African countries. One of the very visible effect is the further crashing of the CFA- the currency of the Franco-Phone West African countries, against the naira. Before this period, N1,000, which exchanged for CFA 1500 before the border closure now, exchanges at CFA1650 to N1000 in Benin Republic.
The Premium Motor Spirit (PMS), otherwise known as petrol, sourced through smuggling across Nigerian  borders with the Franco-phone West African nation, now sells at CFA500 (N302) per litre. This same product sold at CFA 300 (N181) just before the closure.
Qasim said life in Cotonou is getting tougher daily, considering that all business houses related to doing business with Nigeria closed. For now, most warehouses in Cotonu are filled and overflowing with goods mainly rice and frozen food, meant for Nigeria.
A look across the Seme-Krake border revealed the several hundreds of trucks parked at the borders, loaded with goods destined to Nigeria, but they have not been able to cross the border to Nigeria. Findings revealed that most of the trucks trapped at the border contain goods that fall under the acceptable category of goods in the ETLS agreement.
“Generally, business is very dull – the closure has affected all ECOWAS countries. Most Benin warehouses are filled up with rice and frozen chicken. Generally, business is very dull in Benin Republic because most businesses are patronised by Nigerians-across the border and inside the country,” he said.
He warned that should the Nigerian government continue with the operation for up to six months, the economies of most West African countries will collapse as most of them depend on smuggling of foreign goods.
Niger’s sucker punch
For the Beninoise President, Patrick Talon, these may not be the best of times. Four weeks ago, his country’s economy, which is heavily dependent on rice import, received a deadly blow.
Determined to persuade the Nigerian government to reopen the borders, the Republic of Niger President, Issoufou Mahammadou, bows to pressure  from both official and unofficial quarters  to ban the export of foreign rice from Republic of Benin to the country.
Issoufu, it is believed, may have taken the decision, as demanded by Nigeria’s President Muhammadu Buhari, to stop the smuggling of foreign parboiled rice into the through the northern frontiers. Nigeria and Niger share common borders in the north west geo-political region comprising Kano, Jigawa, Kano, Katsina, Sokoto, Zamfara and Kebbi states.
Since June 2015, rice imports in Benin Republic had soared, when the Central Bank of Nigerian (CBN), under Godwin Emefiele   created a list  of 41 products, which were later increased to 44 with the addition of textiles  for which importers  do not have access  to discounted foreign exchange.
Fruitfulness
For now, the closure seem to have been a fruitful initiative. The Comptroller-General of the Nigerian Customs Service (NCS), Hameed Ali, said: “When we closed the border, my fear was that our revenue was going to drop. To be honest, our revenue kept increasing. There was a day in September that we collected N9.2 billion in one day. It has never happened before.
“This is after the closure of the border and since then, we have maintained an average of about N4.7 billion to N5.8 billion on a daily basis, which is far more than we used to collect.
“What we have discovered is that most of those cargoes that used to go to Benin (Republic) and are then smuggled into Nigeria now come to us.
“Now that we have closed the border, they are forced to bring their goods to either Apapa or Tin Can Island and we have to collect duty on them.
“If that (border closure) would continue, to us, it is a welcome situation. Our revenue has not reduced. As a matter of fact, it is increasing as a result of the closure of the border.
“About 10.2million litres of fuel have been cut down from what we assume, we have been consuming,” Ali prided.
Yet, commendations has continued to trail the closure. For instance, the President of National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, is of the opinion that while the border closure is against international treaties and protocols Nigeria entered into willingly, but the action has so far proved to be the most potent approach to tackling the several years of massive smuggling of goods from Nigeria’s neighbouring countries into Nigeria and smuggling of Nigerian fuel to those countries.
Amiwero, who noted that smuggling has been a major challenge to the Nigerian economy, submits that: “if this operation is sustained till at least the end of the year, the Nigerian economy will feel the impact in a very positive way while the West African countries which over the years depended on allowing their countries to be smuggling routes in and out Nigeria will be forced to re-strategise on ways to ensure the survival of their economies,” he said.
According to him, there is no need to lose sleep over the hundreds of trucks of ETLS goods trapped at the borders because those goods attract just one per cent duty payment to the Federal Government, and therefore do not constitute any major economic loss to the country. “Most of those goods are ETLS goods, but in reality are not produced in those West Africa countries purportedly exporting them to Nigeria. They just gather the goods from different parts of the world, repackage and re-export to Nigeria as ETLS goods. That in itself is smuggling,” he said.
For him, the closure is a blessing to the Nigerian ports in disguise. “If the operation is sustained, most of the people importing goods they want sell in Nigeria, but had been patronising Benin and Togo ports will have no other option than to start to route their import to the Nigerian seaports. They don’t have option; their market is here,” he said.
No retreat, no surrender
The National Security Adviser (NSA), Maj.-Gen. Mohammed Babagana Monguno (rtd), has also hinted that the closure would not end soon.
The exercise, tagged: ‘Exercise ‘Swift Response’, he said, therefore, would be in place “until the neighbouring countries can ensure that their countries will no longer serve as transit routes for smuggling of goods into and or destination of smuggled Nigerian fuel’’.
“There is no going back on the border closure  with  the  neighbouring  Republic of Benin and Niger. The countries share boundaries with Nigeria in the north west, north central, southwest and south-south geo-political regions till the  countries bow to government demand to stop  smugglers from using their countries as base to turn Nigeria  into  a dumping ground for prohibited goods, particular , foreign parboiled rice from the Asian country of Thailand. Harmful products, mall and light arms including foreign rice were smuggled into the country through unapproved routes  from the north and  southern part of the country,” he added.


Spotlight: Cambodia hopes to expand market for rice via upcoming China Int'l Import Expo
Source: Xinhua| 2019-10-20 23:17:22|Editor: Wang Yamei
by Nguon Sovan, Mao Pengfei
PHNOM PENH, Oct. 20 (Xinhua) -- "Chinese dishes and Cambodian rice are best match!" said Song Saran, president of the Cambodia Rice Federation, "I believe that Cambodian rice will become more and more popular in China."
In an interview with Xinhua on Friday, Saran said that Cambodia will grasp the opportunity of the second China International Import Expo (CIIE) in Shanghai to promote its best quality rice to the Chinese and international markets.
Thirteen Cambodian rice exporters will showcase their finest rice at the second edition of the CIIE, which is scheduled for Nov. 5-10 in Shanghai, said Saran, adding that Cambodian rice exporters hope to sign more contracts during the expo.
In his office, a variety of rice samples and awards of best rice winners are displayed on shelves. Saran said three varieties of Cambodian rice will be brought to exhibit at the event.
"The first one is Malys Angkor (jasmine rice). Malys Angkor aromatic rice is the world's best rice winner (in 2018)," he said, adding that the other two are fragrant rice and premium white rice.
As about 80 percent of Cambodia's population is farmers, rice has been grown throughout the country, and almost 40 percent of the volume of milled rice produced in the country has been shipped to China.
Saran said the export of Cambodian rice to China has remarkably increased during the first nine months of 2019 after the federation took part in the first CIIE in last November.
The kingdom exported 157,793 tons of rice to China during the January-September period this year, up 44 percent over the same period last year, he said, adding that the export to China accounted for 39.6 percent of the country's total rice export.
China has become the top buyer of Cambodian rice. Saran was strongly confident that the volume will continue to grow in coming years. He said Cambodian rice has been popular in China for the last five years thanks to its good quality and delicious flavor.
"First, it's tasty; second, it's very tender and (has) a very good aroma," he said, emphasizing that Cambodian rice has been grown around the Tonle Sap Lake, where the soil is fertile and farmers do not use chemical fertilizers and insecticide, which makes consumers feel more safe and confident to consume Cambodian rice.
Kann Kunthy, vice president of Amru Rice (Cambodia), which will partake in the upcoming CIIE, said the company has contracted with farmers, providing them seeds and techniques in order to grow the best and chemical-free rice for the Chinese market.
In the factory on the western outskirts of Phnom Penh , as engines roared on Friday, workers had feverishly worked based on their duties and responsibilities. Some unloaded unprocessed rice from trucks and poured it into an intake hopper, where the rice would go through all processes and end up in packaging.
Then, the quality of the processed rice will be checked and certified by a team of Chinese experts from the CCIC (China Certification & Inspection Group) before being permitted to be uploaded into containers destined for China.
"When rice arrives at our factory here, we have our QC (Quality Controller) inspect again to make sure that we buy Grade A, we get Grade A," he said. "When it comes to packing, CCIC checks it again, just to make sure the rice is 100 percent Grade A, so we only ship the best rice to China."
Cheng Vuthy, a QC manager of the Amru Rice Reprocessing Factory, said quality and safety are the top priorities and that the factory always adheres to quality criteria required by clients.
"We work very hard to make sure we bring our best to Chinese consumers," he told Xinhua. "During the past years, Chinese market has been growing very fast and we are very happy to know our rice will be exhibited in Shanghai."
"This container behind me will be shipped to China soon, and we hope our rice can become more and more popular in China," he added.
Chen Qisheng, general manager of CCIC's Cambodian branch, told Xinhua that, the coming expo in Shanghai will be a golden chance for Cambodia to introduce its rice to more Chinese consumers.
"I've been working in Cambodia for two years. Cambodian rice is aromatic and glutinous. Cambodian farms are clean, and have no chemical pollution," Chen said, "that's why Cambodian rice is tasty and safe."
In addition to rice, China also imports banana, cassava and cashew-nuts from Cambodia. Chen said that CCIC has been working with Cambodian partners to export more kinds of agricultural products to China, including mango, dragon fruit, coconut and etc. "With the help from Chinese partners and huge demand of Chinese consumers, Cambodian agricultural sector is going to boom."
Gov’t to give P5-K cash aid to rice farmers
By Lilybeth IsonPhilippine News Agency on October 20, 2019

Description: http://www.canadianinquirer.net/wp-content/uploads/2019/07/adult-agriculture-blue-sky-2582569.jpgThe DA chief also clarified that the cash assistance is different from the earlier loan assistance of PHP15,000 offered by the government to affected rice farmers under the Expanded Survival and Recovery Assistance Program for Rice Farmers (SURE Aid Program). (Pexels Photo)
MANILA — In view of the declining palay prices since the rice tariffication law took effect in March, the government will be giving PHP5,000 cash assistance to affected farmers tilling one hectare and below.
Agriculture Secretary William Dar, on the sidelines of the ongoing Philippines-India Trade Consultations held at Shangri-la Makati on Friday, said the cash assistance is a one-time cash-out and this will be taken from the tariff being collected out of the Rice Tariffication Law (RTL).
Around PHP3 billion will be needed for the 600,000 rice farmer-beneficiaries in the country.
“I’m hoping that this (cash assistance) will be given before Christmas,” Dar said.
At present, he said about PHP11 billion have been collected from RTL.
The DA chief also clarified that the cash assistance is different from the earlier loan assistance of PHP15,000 offered by the government to affected rice farmers under the Expanded Survival and Recovery Assistance Program for Rice Farmers (SURE Aid Program).
The PHP1.5-billion SURE Aid Program is the government’s initial relief response to rice farmers who are tilling one hectare of land and below and are affected by the initial impact of lower palay prices. The one-time, zero-interest, no collateral loan of PHP15,000 is payable up to eight years.
Meanwhile, Dar said the government has decided to defer the implementation of safeguard duties on rice imports.
“I presented the proposal to the Cabinet and their decision (is that) there might be an inflationary effect,” he said.
Dar said there will be a meeting of the Economic Development Cluster (EDC) on October 24 to include discussion on the proposed general safeguard duty on rice import.

Cambodia hopes to expand market for rice via upcoming China Int'l Import Expo

Source:Xinhua Published: 2019/10/21 13:49:23
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Description: http://www.globaltimes.cn/Portals/0/attachment/2019/2019-10-21/7be508cb-b676-4d6b-91fd-f2cde6489a90.jpeg
Cambodian rice is displayed during a product fair in Phnom Penh, Cambodia on June 22, 2015. (Xinhua/Phearum)

"Chinese dishes and Cambodian rice are best match!" said Song Saran, president of the Cambodia Rice Federation, "I believe that Cambodian rice will become more and more popular in China."

In an interview with Xinhua on Friday, Saran said that Cambodia will grasp the opportunity of the second China International Import Expo (CIIE) in Shanghai to promote its best quality rice to the Chinese and international markets.

Thirteen Cambodian rice exporters will showcase their finest rice at the second edition of the CIIE, which is scheduled for Nov. 5-10 in Shanghai, said Saran, adding that Cambodian rice exporters hope to sign more contracts during the expo.

In his office, a variety of rice samples and awards of best rice winners are displayed on shelves. Saran said three varieties of Cambodian rice will be brought to exhibit at the event.

"The first one is Malys Angkor (jasmine rice). Malys Angkor aromatic rice is the world's best rice winner (in 2018)," he said, adding that the other two are fragrant rice and premium white rice.
Description: http://www.globaltimes.cn/Portals/0/attachment/2019/2019-10-21/3f424f31-c092-4a8e-9304-d4f5a5820d63.jpeg
Farmers load sacks of paddy rice onto the cart in Kandal province, Cambodia, Sept. 16, 2016. (Xinhua/Sovannara)

As about 80 percent of Cambodia's population is farmers, rice has been grown throughout the country, and almost 40 percent of the volume of milled rice produced in the country has been shipped to China.

Saran said the export of Cambodian rice to China has remarkably increased during the first nine months of 2019 after the federation took part in the first CIIE in last November.

The kingdom exported 157,793 tons of rice to China during the January-September period this year, up 44 percent over the same period last year, he said, adding that the export to China accounted for 39.6 percent of the country's total rice export.

China has become the top buyer of Cambodian rice. Saran was strongly confident that the volume will continue to grow in coming years. He said Cambodian rice has been popular in China for the last five years thanks to its good quality and delicious flavor.

"First, it's tasty; second, it's very tender and (has) a very good aroma," he said, emphasizing that Cambodian rice has been grown around the Tonle Sap Lake, where the soil is fertile and farmers do not use chemical fertilizers and insecticide, which makes consumers feel more safe and confident to consume Cambodian rice.

Kann Kunthy, vice president of Amru Rice (Cambodia), which will partake in the upcoming CIIE, said the company has contracted with farmers, providing them seeds and techniques in ord
Description: http://www.globaltimes.cn/Portals/0/attachment/2019/2019-10-21/3cbed0f3-30e1-440f-9f11-09151d30cf3f.jpeger to grow the best and chemical-free rice for the Chinese market.

A Cambodian farmer removes rice seedlings in Dangkor district on the outskirts of Phnom Penh, Cambodia, Aug. 20, 2014. (Xinhua/Sovannara)

In the factory on the western outskirts of Phnom Penh , as engines roared on Friday, workers had feverishly worked based on their duties and responsibilities. Some unloaded unprocessed rice from trucks and poured it into an intake hopper, where the rice would go through all processes and end up in packaging.

Saturday, October 19, 2019

19th October,2019 Daily Global Regional Local Rice E-Newsletter

19th October,2019 Daily Global Regional Local Rice E-Newsletter


Rice farmers to get P5-K cash aid
Philippine Daily Inquirer / 04:30 AM October 19, 2019
MANILA, Philippines — The government has decided to distribute P5,000 in cash assistance to rice farmers who continue to reel from plummeting palay prices following the implementation of the rice tariffication law.
Agriculture Secretary William Dar made the announcement during the sidelines of the India-Philippines trade consultation event on Friday, adding that they were hoping to give out the subsidies before Christmas.
The guidelines for the program is currently being drafted.
However, only 600,000 farmers who own one hectare of land or less and are included in the agency’s registry are expected to benefit from the program, or about 20 percent of the entire number of palay farmers nationwide.
Dar said the decision to give the cash dole-out was made after Cabinet officials rejected the imposition of additional tariffs on rice imports due to possible “inflationary effects.”
Dar noted, however, that increasing tariffs on rice would remain a possible option in the future as a means to temper the volume of the staple in the market.
The cash subsidy, which would total to about P3 billion, will come from import duties collected from the rice tariffication law. Tariff receipts from imported rice has already reached P11 billion, Dar said.
Under the law, the first P10 billion to be collected from rice tariffs must be used in specific programs for the modernization of the industry. Anything in excess may be used to supplement the said programs.

Rice farmers to receive one-time P5,000 cash assistance – Dar
Published October 18, 2019, 4:37 PM
By Madelaine Miraflor 
Government has deferred its plan to raise tariff on rice imports as part of measures to address the suffering of Filipino farmers, who are currently dealing with the declining price of palay amid the influx of imported rice in the local market.
Description: Agriculture Secretary Dr. William D. Dar (KEVIN TRISTAN ESPIRITU / FILE PHOTO / MANILA BULLETIN)
Agriculture Secretary Dr. William D. Dar (KEVIN TRISTAN ESPIRITU / FILE PHOTO / MANILA BULLETIN)
Rice farmers will instead receive a one-time cash assistance of P5,000 each, Agriculture Secretary William Dar said on the sidelines of the Philippines-India Trade Consultations Friday.
Dar said there were concerns among Cabinet officials that imposing higher tariffs on rice imports could have inflationary effect on the retail cost of rice, which has already gone down since the Rice Tariffication Act (RA 11203) was passed.
“What they want is to just give cash assistance,” Dar said, adding that only the farmers with one hectare and below will be given the cash assistance of P5,000 each.
Based on his estimates, only 600,000 farmers will benefit from this cash assistance program.
Dar said the guidelines for the cash assistance program – which will only cover as much as 600,000 farmers – is now being drafted and will be out soon.
“We’re hoping this can be given before Christmas,” Dar said. “[The money] will be given straight to the farmers.”
Dar’s statement came days after announcing that the Department of Agriculture (DA) already “terminated” the investigation on the possible injury that RA 11203 may have caused the local rice sector.
Under Section 10 of RA 11203, in order to protect the Philippine rice industry from sudden or extreme price fluctuations, a special safeguard duty on rice could be imposed in accordance with Safeguard Measures Act.
The result of DA’s study would be the basis for the government to implement this safeguard measure, which would allow the government to raise the tariff on rice imports — a move that should temporarily discourage traders in bringing in more imported rice into the country.
When asked if the government is now totally scrapping the plan of raising tariffs on rice imports, Dar said it will always be an option.
Since RA 11203 was passed, more than 2 million metric tons (MT) of rice already entered the country. From this, the government had so far collected P11 billion in tariff revenues.
Such development, or the so-called influx of imported rice, is said to be the reason why the price of locally produced palay (unhusked rice) has been declining non-stop.
The latest data from Philippine Statistics Authority (PSA) showed that as of the fourth week of September, the average farmgate price of palay dropped further to P15.82 per kilogram (/kg), 29.3 percent lower from its price level of P22.36/kg a year ago.
Week-on-week, it slightly went down by 0.9 percent from P15.96/kg.
During the period, palay prices dipped to as low as P10/kg in Central Luzon, particularly in Bulacan. In some areas in MIMAROPA, Western Visayas, and ARMM, palay is bought for as low as PP11/kg to P12/kg.
This means that farmers in these areas had to sell their yield at a loss because the cost of producing palay remains at P12/kg.
Stop rice importation
Meanwhile, Senator Imee R. Marcos has appealed to President Duterte to temporarily freeze the importation of rice because it is hurting Filipino farmers.
This after Marcos discovered during the public hearing of the budget of the DA that imported rice are stocked in warehouses of rice traders who bought them from rice-producing countries in Asia.
The DA said the top five rice supplying countries from whom traders buy rice from are Thailand, Vietnam, India, China and Pakistan.
“I call on the President to freeze the importation of rice. There are many reasons why the importation of rice should be frozen: Impose a 800 percent taxes like what Korea and Japan do. Impose a strict sanitary and phytosanitary measures on rice, just like what other countries do on banana, pineapple and other Philippine products,” Marcos said.
Marcos said there is a cartel that smuggle tons and tons of rice, and there are rackets on the rice warehousing by rice traders.
“Even without amending the rice tarrification law, tigil na pansamantala yang importation hanggang end of the year, hanggang mabawasan ang laman ng mga bodega, I want to say pwede ba tigilan na ang pag-import ng bigas hanggang maubos na yan, kasi eto na ang main crop, ngayon na ang panahon ng anihan (Temporarily stop the importation of rice until the end of the year, until the rice stocks in warehouses are reduced. Temporarily stop rice importation until the imported rice are consumed. Rice is the main crop of our farmers. It is already harvest time), “ Marcos added.
The Rice Tarrification Law, Marcos said allows the President to stop the importation of rice when it negatively affects the earnings of farmers. (with a report from Mario B. Casayuran)

Cabinet more concerned with inflation than plight of rice farmers – Dar
Last updated Oct 19, 2019
Agriculture Secretary William Dar said the government has decided to defer the implementation of safeguard duties on rice imports.
“I presented the proposal to the Cabinet and their decision (is that) there might be an inflationary effect,” said Dar.
Dar had previously agreed to invoke Republic Act (RA) 8800, or the Safeguard Measures Act, to impose a 30-percent to 80-percent duty on imported rice.
Palay prices have bombed after the Rice Tariffication Law and removed quantitative restrictions on rice imports and imposed a 35 percent tariff on imports from Southeast Asia.
Dar said there will be a meeting of the Economic Development Cluster (EDC) on October 24 to include discussion on the proposed general safeguard duty on rice import.
In view of the declining palay prices since the rice tariffication law took effect in March, the government will be giving P5,000 cash assistance to affected farmers tilling one hectare and below.
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Dar, on the sidelines of the ongoing Philippines-India Trade Consultations held at Shangri-la Makati on Friday, said the cash assistance is a one-time cash-out and this will be taken from the tariff being collected out of the Rice Tariffication Law (RTL).
Around P3 billion will be needed for the 600,000 rice farmer-beneficiaries in the country.
“I’m hoping that this (cash assistance) will be given before Christmas,” Dar said.
At present, he said about P11 billion have been collected from RTL.
The DA chief also clarified that the cash assistance was different from the earlier loan assistance of P15,000 offered by the government to affected rice farmers under the Expanded Survival and Recovery Assistance Program for Rice Farmers (SURE Aid Program).
The P1.5-billion SURE Aid Program is the government’s initial relief response to rice farmers who are tilling one hectare of land and below and are affected by the initial impact of lower palay prices. The one-time, zero-interest, no collateral loan of P15,000 is payable up to eight years.
(With a report from PNA)

18.10.2019  GENERAL NEWS

Ghana To End Importation Of Rice By 2022 – Minister

By Richard Obeng Bediako

Description:  Kennedy Nyarko Osei
18 HOURS AGO  GENERAL NEWS 
A Deputy Minister at the Ministry of Food and Agriculture, Kennedy Nyarko Osei, has revealed that Ghana is working around the clock to cease the importation of rice in the country based on the recent projections.
According to him, government is already working hard to ensure that rice imports will come to an end by 2022.
He said it follows the success chalked as the country did not import maize between January and September this year due to increased local maize production.