MANILA -- Trade Secretary Ramon Lopez said retailers may be permitted to directly import rice and sugar, but retail prices will be set by government.
Lopez told reporters that this price setting system is in line with the Administrative Order 13 released by Malacañang Palace last month, directing National Food Authority (NFA), Sugar Regulatory Administration (SRA), and Department of Trade and Industry (DTI) to remove administrative constraints and non-tariff barriers on the importation of agricultural products. This AO aims to curb food inflation.
“[We] proposed to have a price setting approach where we will allow importation, only if retailers or importers who can guarantee retailing price at PHP38 per kilo for rice and PHP50 [per kilo] for sugar,” he said.
“This way, we don’t need to worry about layers of traders who will just make margins in the process. With this scheme, we allow retailers who will undertake to sell all their imported stocks at the set price,” he added.
Lopez added that import permits can be provided to the retailers or importers for specific volume per period.
For rice, in particular, he said some 350,000 metric tons of rice, which is good for two weeks, can be initially imported for this program. This on top of the volume that the NFA is currently importing, Lopez said.
He said the PHP38-per-kilo rice is mostly consumed by the B, C, and D markets.
The price level of this commercial rice is now more than PHP40 per kilo, he added.
Lopez said his department wants to partner with major supermarkets in the country for this initiative. Local supermarket giants are Sy-family’s SM Supermarket, Gokongwei’s Robinsons Supermarket, and Co-family’s Puregold, among others.
Aside from supermarket, imported rice and sugar with fixed price will be sold at DTI’s Suking Outlets and Department of Agriculture’s Malasakit Stores.
“Why supermarkets? Because we have a greater control as to their sales record,” Lopez said.
“[I] hope, this is one quick solution while awaiting for rice tariffication. This will keep traders on their toes,” he said.
Lopez said the importers will still be paying tariffs, which goes to government's coffers and also protects local farmers. (PNA)
