Agriculture Secretary Francisco P. Tiu Laurel, Jr. has outlined the implementing rules and regulations of the Rice Industry and Consumer Empowerment Act, which could require rice importers to set up post-harvest facilities to qualify for quotas.
According to reports, the proposed facilities that would make importers eligible to ship in rice include mills, drying systems, and complete rice processing systems. Importers could also be required to buy domestically grown rice to process at their facilities.
The policy aims to benefit farmers, consumers, and agribusinesses, with investment in agriculture being rewarded. By giving the right to import or allocate imports to those who have invested in the industry and continuously buy palay (unmilled rice) and process it from farmers, the industry can thrive.
The current practice of a majority of rice importers solely focusing on importing could be addressed through this measure. By requiring importers to invest in the industry, they will be incentivized to buy more palay from farmers, which will benefit the local agriculture sector.
The Rice Industry and Consumer Empowerment Act amends the Rice Tariffication Law, restoring and expanding the National Food Authority's regulatory powers over rice. The proposed law is still pending in Congress.
