The influx of imported rice would set a dangerous precedent in the country’s food security, contradicting the very essence of the Rice Liberalization Law.

VOLUNTEERS rest a bit from packing rice for the victims of the recent earthquakes in Mindanao. AFP

Amid excessive supply and improved local production, the Philippines is set to break records in terms of the volume of imported rice within and those entering its borders.

Based on international data, the country is set to reach a record-high 3 million metric tons (MT) of rice imports this year.

This projection casts fear among lawmakers, noting that the influx of imported rice would set a dangerous precedent in the country’s food security, contradicting the very essence of the Rice Liberalization Law (RTL).

“We should all be deeply worried by the news that the Philippines has surpassed China as the world’s biggest importer of rice. This means that our country has become perilously dependent on other nations for our everyday food.

“What would happen to us when we can no longer import rice from other countries? Would we still have rice to eat?” Pangilinan underscored.

According to the senator, who served as the former administration’s Presidential Assistant for Food Security and Agricultural Modernization, the Philippine’s food insecurity was aggravated by the impact of rice imports on our farmers.

“Urgent action is demanded. Provide cash assistance to help our farmers through these lean times. (We should) raise the tariff for rice imports and (there should be an) immediate and proper use of RCEF for mechanization and increased productivity,” Pangilinan said.

“(The government should) correctly implement the Sagip Saka Act to increase the incomes of our farmers as soon as possible,” the Lawmaker added.

Pangilinan said the farmers’ suffering should end as Filipinos will eventually realize the consequences of the government’s delayed actions over their problems.

If the forecast was right, the Philippines with a population of only 105 million is poised to become the world’s largest importer of rice, beating China, the world’s most populous country with residents of about 1.4 billion people.

Based on its latest report, the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) said the country is seen importing some 2.5 million metric tons (MT) of the staple food by 2020, the same volume as China’s import this year.

“Decreased imports from original projection reflect the preliminary investigation into import safeguards,” the report read, adding that the forecast came amid the country’s excessive rice supply and improved local production.

In the same report, the USDA-FAS identified the Philippines as among the top importers of rice, beating China’s record of 2.5 million MT.

From just 800,000 MT three years ago, rice imports of the country nearly quadrupled to three million MT for 2019 — accounting for about seven percent of total global rice imports.

“While China rice imports continue to shrink, Philippines’ purchases provide much-appreciated reprieve from nearby exporters in Southeast Asia,” the report cited, noting that by year-end, rice imports in the country is seen to breach rice import records.

The USDA-FAS also noted that the Philippines is expected to restrict its rice importation next year as the rice liberalization remains a challenge for the country.

It said the country is seen importing some 2.5 million MT in 2020, the same volume as what China imported this year.

Currently, the government wants to limit the rice importation by restricting the issuance of sanitary and phytosanitary import clearances to traders.

In a recent press event, Senate committee chairman on agriculture and food Sen. Cynthia Villar said the government will no longer impose a higher tariff rate on imported rice amid fierce calls from farmers and industry stakeholders to implement safeguard measures to curb the declining prices of palay.

Villar said the imposition of a higher tariff rate would negatively affect the Philippines’ global ratings.

“Imposing higher rice duties would mean we cannot compete. They will think that we just gave up and we just can’t do it. We should show them that we can compete,” Senator Villar recently told reporters.

But according to Pangilinan, the government should start to impose agriculture special safeguards, which is equivalent to one-third of the regular tariffs under the Republic Act 8880 or the Safeguard Measures Act that can be prompted by a volume of price threshold of imports.

With the continued importation, the country’s rice inventory continues to soar by 43 percent in October, the Philippine Statistics Authority said.

The latest data from the statistics body showed that total rice inventory as of October stood at 2.28 million MT, up 43.4 percent from last year’s volume of 1.59 million MT.

Based on the average daily consumption of Filipinos of 32,000 MT, the current inventory is sufficient for 71 days.

As of October, the Bureau of Customs said some 1.9 million MT of rice already entered the country. This translated to a national inventory of 2.28 million MT imported rice during that month.

This figure was higher by 43.4 percent than the previous year’s record of 1.59 million MT and substantially higher than the previous month’s level.

The spike in the country’s imports was due to the enactment of the RTL in March, which opened the country’s doors to unlimited rice imports. With the law in place, traders are now allowed to freely import rice as long as they would be able to secure the necessary permits and pay a tariff of 35 percent.

However, the average farm gate price of palay plummeted to an eight-year low as it was unable to compete with more affordable imported rice.

Some farmers from Central Luzon reported this week that the farmgate prices of palay now stood at only P8 to P10 per kilogram.