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Philippines Temporarily Lifts Quotas on Rice Imports (DJ)

Source: Dow Jones Newswires
07/04/2008

Manila, April 7 - The Philippines has temporarily lifted quotas on rice imports amid growing concerns about the price of the staple food, officials said Monday.

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"Anybody can import rice, the quota is lifted but the tariff must be paid," said Presidential Management Staff director general Cerge Remonde.

"They can import as much as they want for as long they do not withhold (the supply) but channel it to the market," he said.

This means a previous quota limiting private imports of rice to 300,000 tonnes annually had been scrapped.

Agriculture Secretary Arthur Yap, in a statement, said the government is encouraging "importation of rice by all parties aside from NFA (the National Food Authority)."

Previously, the state-run NFA was in charge of almost all rice importation.

However, Yap stressed that "rice importation is not exclusive to NFA."

Both officials said that the import tariffs on rice were still in effect despite calls for their removal.

Yap said the government is looking at ways to encourage the private sector to import more rice, including an arrangement where the NFA would help shoulder part of the tariffs.

The government of President Gloria Arroyo has been trying to ensure the country has adequate supplies of rice at affordable prices despite the rising global price of the commodity.

Arroyo has previously unveiled a multi-billion-peso plan to overhaul the agricultural sector to boost production.

The country is one of the world's biggest importers of rice. Increases in local production have not been able to meet the demand of the growing 90-million-strong population.

The government has previously announced plans to import 1.5 million tonnes of the staple cereal this year and has the capacity to import up to 2.7 million tonnes if needed.



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