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NFA loss of import function gave private traders too much control over rice supply — AgriNurture

THE removal of the National Food Authority’s (NFA) rice import function effectively handed control over the rice supply to private traders, AgriNurture, Inc. (ANI) President and Chief Executive Officer Antonio L. Tiu said in an interview with ANC.

“The private sector will only step when there is profit to be made… I do not agree (with the removal of) the NFA’s power to import rice,” he said.

The Rice Tariffication Law of 2019 (Republic Act No. 11203) privatized the function of importing rice formerly carried out by the NFA. Instead, private traders were allowed to bring in their own shipments but had to pay a tariff of 35% on Southeast Asian grain.

The law was intended to relieve the government of having to pay for rice imports. The tariff also generated revenue for the government and helped finance the Rice Competitiveness Enhancement Fund, which is tasked with modernizing the rice industry.

Mr. Tiu said parts of the law “are not advantageous to the country as a whole” and need to be reviewed.

“For example, you are not supposed to restrict the NFA from importing rice because the NFA is supposed to be the agency in charge of the food security, particularly the rice buffer stock,” Mr. Tiu added, referring to the NFA’s role of maintaining a reserve for release during calamities and shortages.

The NFA is now restricted to buying domestic rice to meet its buffer stock quota.

Mr. Tiu said limiting the NFA to buying domestic rice causes “seasonal problems in rice availability every year.”

“This seasonality problem can only be addressed by importing for the short term for the foreseeable future, because attaining rice self-sufficiency may take years if not decades to achieve,” he added.

The Philippines imported 2.19 million metric tons of rice in the eight months to August, down 42.8% year on year as international rice prices rose after major producers like India announced restrictions on exports.

“This rice problem is more on the macro side; we have neighbors suffering from a shortfall in terms of harvest as well. We have neighbors aggressively buying for their buffer stock program, and we have neighbors preparing for war,” he said.

“So, we have to look at long-term solutions (beyond) the price controls on rice,” he added.

Last week, the government issued Executive Order No. 39, which temporarily imposed price caps on rice at P45 per kilo for well-milled rice and P41 for regular-milled. — Adrian H. Halili

Senate vows to fund South China Sea defenses

PHOTO FROM ARMED FORCES OF THE PHILIPPINES

By John Victor D. Ordoñez and Kyle Aristophere T. Atienza, Reporters

THE PHILIPPINE Senate expressed support for the country’s defense agencies, along with the Philippine Coast Guard (PCG), vowing to increase their budgets to sufficiently upgrade maritime security capability amid tensions with China in the South China Sea .

“The Senate is one and united in assisting your budgets and increasing your funds for proper equipment for the West Philippine Sea situation,” Senate President Juan Miguel F. Zubiri said at Tuesday’s joint committee hearing on matters of the South China Sea.

Mr. Zubiri gave the Senate’s commitment to back funding requirements for the PCG and the Armed Forces of the Philippines (AFP) “whether it be confidential, intelligence funds or funding that will give you proper equipment for your needs in the West Philippine Sea.”

He noted that senators had already planned to transfer the confidential funds of government agencies that do not need them to the National Security Agency and other intelligence-gathering bodies of the state.

Senator Francis T. Tolentino said a newly formed Senate Maritime and Admiralty Zones Committee on Sept. 14 would tackle proposals establishing Philippine maritime zones, archipelagic sea leans, and boosting the country’s archipelagic defense.

Meanwhile, Jay L. Batongbacal, director of the University of the Philippines Institute for Maritime Affairs and Law of the Sea, told the same hearing that a United States aircraft did not violate international law when it was deployed to monitor a Philippine resupply mission last week.

JOINT FILIPINO-US TROOPS MUST BE STATIONED IN SCS — ANALYST
An international security analyst is urging the Philippine government to replace the BRP Sierra Madre — the rusty World War II-era ship grounded at Second Thomas Shoal (Ayungin Shoal) to serve as a military outpost in the South China Sea (SCS) — with a permanent structure that will be manned by Filipino and American troops.

Blake Herzinger, a research fellow in the Foreign Policy and Defense Program at the United States Studies Center, noted that China might exploit the deteriorating condition of BRP Sierra Madre, which was intentionally run aground in the shoal in 1999.

“The United States and the Philippines should act before being forced to react to deteriorating conditions aboard the ship,” he said in analysis published by Texas National Security Review, noting that failure to do so would create conditions “for loss of Philippine sovereignty, a reenactment of China’s seizure of the Philippines’ Scarborough Shoal in 2012.”

A possible conflict in the shoal in the future could also create a crisis within the bilateral US-Philippine alliance, he added.

“The Philippines should remove the Sierra Madre and replace it with a permanent structure manned by combined rotational forces from both the Philippines and the US Marine Corps,” Mr. Herzinger said, noting that a combined outpost could deter Beijing’s efforts to block resupply missions in the West Philippine Sea.

He said that while a more muscular approach could lead to increased tension “given the Chinese military’s considerable force presence in the area,” “the coercive tactics long employed against littoral states in the region would be less effective against the US Navy, which could dispel the image of Chinese forces enjoying unchallenged dominance in the region.”

Mr. Herzinger said the best structure to replace the World War II-era vessel would be “a repurposed oil platform, oil rig, or accommodation platform.”

“Development of a combined facility would require a ready-made structure able to quickly replace the Sierra Madre immediately following its removal,” he said.

“Or, alternatively, the new facility could be emplaced as an upgraded living structure for the marines living aboard it, with the Sierra Madre to be disassembled after the new outpost is installed,” he added.

Meanwhile, the security expert said Beijing will likely physically challenge the emplacement of a platform with elements from its navy, coast guard, or maritime militia.

But a significant show of US naval and air power during the emplacement of the facility “would force Beijing to shoulder risk and be a step toward reversing years of unimpeded aggression,” Mr. Herzinger said.

2nd round of capital aid to rice retailers unlikely

PHILIPPINE STAR/EDD GUMBAN

THE GOVERNMENT is unlikely to implement a second round of capital aid to retailers affected by the imposition of price ceilings on rice, the Department of Social Welfare and Development (DSWD) said on Tuesday.

Reporters at the Palace briefing asked Social Welfare Secretary Rexlon T. Gatchalian about the possibility of a second tranche of aid for small-scale rice retailers, to which he replied that price capping was only a temporary solution to the surge in rice prices.

“The price cap is not meant to last long so that is why we are sticking to that,” Mr. Gatchalian said.

The price cap order, which became effective on Sept. 5, imposes a maximum price of P41 per kilo for regular milled rice and P45 for well-milled rice. The government said the order aims to address a spike in prices, amid alleged hoarding and price manipulation by cartels.

An industry association had said a rice retailer loses around P7,000 a day due to the price ceiling, or around P49,000 a week.

“That is why he (President Ferdinand R. Marcos Jr.) told us earlier when we met to ramp up the distribution of livelihood grants to shore up their capital,” Mr. Gatchalian said, referring to a Cabinet meeting earlier in the day.

He said the government aims to finish the distribution of P15,000 capital assistance to rice retailers by Sept. 14 with a focus on those from highly urbanized cities, in light of the impending election spending ban.

“The President instructed us to finish this at the soonest possible time. He likes the idea of finishing it by the 14th… but we told him that we have applied for an exemption (from the election spending ban) in the eventuality that there’ll be unforeseen circumstances that will cause some delays,” said Mr. Gatchalian.

The DSWD vowed to ensure that those who have not been prioritized will receive the livelihood grant. “That’s the basis of our appeal,” Mr. Gatchalian said of their intention in filing for an election period exception from distributing the aid.

The imposition of price control has been heavily criticized by economists, who said the order could limit the supply of the food staple and lead to black-market trading.

They also emphasized that traders might hesitate to buy rice from farmers, who will be left with no choice but to lower farmgate prices.

Mr. Marcos and his Cabinet officials have said the price cap order is only temporary, but without providing details as to when it will be lifted.

In a television interview on Monday, Trade Secretary Alfredo E. Pascual said the government may lift the price ceiling on rice in two weeks when the local harvest starts, and more imports arrive.

“Within September, we are looking at 2 million metric tons of harvest and entry of some imported rice,” Mr. Pascual said.

Mr. Marcos’ economic team has been eyeing to cut the tariff for rice imports to as low as 0% from 35% to manage market prices. — Kyle Aristophere T. Atienza

House panel approves bill to develop country’s blue economy

BW FILE PHOTO

By Beatriz Marie D. Cruz, Reporter

A HOUSE panel on Tuesday has approved a measure creating a framework to utilize and preserve the Philippines’ ocean-based resources, a priority measure expected for Congress approval this year.

Negros Occidental Rep. Jose Francisco B. Benitez, who headed the technical working group (TWG) that fine-tuned the bill, said the proposed Blue Economy Act seeks to “redefine our relationship with our marine waters and create a path to sustainable and inclusive development of our marine resources.”

Blue economy is an economic model seeking the sustainable utilization of ocean resources through green infrastructure and technology. Vietnam, Indonesia and China have been “aggressively developing” their blue economies.

Under the measure, the National Coast Watch System, which is currently limited to coordinating maritime security policies and patrols, will be renamed into the National Maritime Monitoring System that will have the National Maritime Council, National Maritime Office, and the National Maritime Coordination Center as its attached offices to harmonize policies.

“It is necessary to reorganize and strengthen the National Coast Watch System and reorient government policy towards sustainable development of our marine and coastal resources and ensure the health of our aquatic ecosystems,” Mr. Benitez said.

Mr. Benitez told the House Committee on Economic Affairs that reclamation activities, oil and gas exploration and extraction, and submarine mining have been excluded from the list of priority maritime activities.

“But considering that these activities become necessary to a certain extent, we included a clause that provides for a mechanism for the National Maritime Council to evaluate the environmental impact of such activities,” he said. A clause was added for the integration of environmental-economic accounting in the assessment.

Negros Occidental Rep. Gerardo P. Valmayor, Jr., who heads the committee, acknowledged that “the Philippines, being the world’s second largest archipelagic state with extensive maritime domain, should pursue ocean-based and ocean-related activities that are economically sustainable.”

The Philippine territory is approximately 88% maritime waters and maritime industries account for 3.6% of the gross domestic product (GDP), latest data from the Philippine Statistic Office show.

Last month, Environment Secretary Maria Antonia Yulo-Loyzaga said the Philippines produces 163 million plastic sachets, 48 million shopping bags, and 45 million thin-film bags daily, with 35% leaking into oceans and open environments.

Stressing the need to improve coastal and marine resource management, Mr. Benitez said: “If we do not act now, our marine wealth will be lost due to damage from overexploitation and pollution.”

The bill is included in the Legislative-Executive Development Advisory Council’s (LEDAC) list of priority measures. A similar measure is pending in a Senate committee.

Ressa, Rappler Holdings beat tax evasion raps anew

MARIA A. RESSA — PHILIPPINE STAR/MICHAEL VARCAS

A PASIG City court has cleared Rappler Holdings Corp. and its founder and Chief Executive Officer Nobel Peace Prize laureate Maria A. Ressa of tax evasion, four months after the country’s tax court acquitted her of the same charge.

“This is a victory not just for Rappler but for everyone who has kept the faith that a free and responsible press empowers communities and strengthens democracy,” Rappler said in a statement, citing the ruling handed down by the Pasig City Regional Trial Court Branch 157 on Tuesday.

The Bureau of Internal Revenue (BIR), during the presidency of Rodrigo R. Duterte, accused Ms. Ressa and her company of evading taxes by failing to declare Philippine depositary receipts it sold to foreign investment firms North Base Media and Omidyar Network Fund LLC in their income tax returns in 2015.

A Philippine depositary receipt is a security that gives its holder the right to the sale of the underlying shares of stock, according to the Philippine Stock Exchange. It is not evidence or certificates of ownership in a company.

The court said Rappler had not gained taxable income from the receipts. Under the country’s Tax Code, income tax may be imposed on ventures that yield profit.

In May, the Court of Tax Appeals stood by its decision to acquit Ms. Ressa and her media organization’s holdings company, citing a lack of evidence. — John Victor D. Ordoñez

PCSO combats illegal gambling

PHILSTAR FILE PHOTO

THE PHILIPPINE Charity Sweepstakes Office (PCSO) revealed on Tuesday that it uses its confidential funds to curb the proliferation of illegal gambling in the country.

Appearing before the House Committee on Appropriations, PCSO Board Secretary Reymar H. Santiago confirmed that they have P100 million in confidential funds for 2023, of which P25M has already been utilized to “gather information regarding illegal gambling activities in the provinces.”

“We considered those illegal number games [bookies, jueteng, small-town lottery] as a competitor of PCSO, that’s one of the challenges we are facing for the ops of our gaming,” PCSO Assistant General Manager Lauro A. Patiag told the committee.

However, none of the resource speakers explained details on utilization of the confidential funds, which is under the control of the PCSO general manager. The effort to arrest illegal gambling is coordinated with law enforcement agencies, said Mr. Santiago.

Both PCSO General Manager Melquiades A. Robles and Chairman Junie E. Cua were not present in the hearing, criticism from some legislators.

“I feel insulted that the big bosses of the government-owned and controlled corporation known as PCSO wouldn’t attend the budget hearings,” Antipolo Rep. Romeo M. Acop told the committee.

Surigao del Norte Rep. Robert Ace S. Barbers blamed the PCSO’s “laxed policy” as the reason why illegal gambling remains rampant. “If they have a confidential fund purposely to help assist in the eradication of illegal gambling, they’re probably not performing very well,” Mr. Barbers said.

The House panel suspended the August 14 hearings on the PCSO’s budget after errors were noted in its accounts.  — Beatriz Marie D. Cruz

No more glitches, says CAAP

CIVIL AVIATION AUTHORITY OF THE PHILIPPINES

FACING SENATORS on Tuesday, officials of the Civil Aviation Authority of the Philippines (CAAP) expressed confidence that no more glitches will paralyze airport operations this year, noting efficient upgrading of equipment since the Ninoy Aquino International Airport shutdown last New Year’s Eve.

“We have recently been performing power quality analysis operations and have been upgrading and replacing defective parts in our systems,” CAAP Director General Manuel Antonio L. Tamayo told a Senate hearing on the Department of Transportation (DoTR) budget.

“We are confident that we won’t have glitches since we have been working on our system and we are coordinating with our suppliers.”

He said CAAP would need an additional P13 billion to P15 billion to develop a new communications, navigation and surveillance system next year. — John Victor D. Ordoñez

Marcos off to Singapore, Sept. 13

PRESIDENT FERDINAND R. MARCOS, JR. — PHILIPPINE STAR/KRIZ JOHN ROSALES

PRESIDENT FERDINAND R. Marcos, Jr. will fly to Singapore on Sept. 13 for the 10th Milken Institute Asia Conference, headlining the discussion focused on peace and stability, inequality, cultural differences, and irreparable environmental damage.

Titled “A Conversation with the President of the Republic of the Philippines,” Mr. Marcos’ 30-minute talk will highlight “Philippine government efforts in improving the lives of Filipinos amid challenges from significant global events,” a Palace statement read.

While in Singapore, Mr. Marcos will meet with business leaders to “strengthen economic ties and further forge possible partnerships between the two economies in select industries,” it added.

The Philippine leader, who turns 66 on that day, will also attend the finals of the Formula One Singapore Grand Prix 2023.

Critics of his administration, among them political expert Cleve Argulles, told a television interview that Marcos’ trip just days after coming back from the ASEAN Summit is “really bad optics,” noting that the Philippines is facing serious domestic economic issues.— Kyle Aristophere T. Atienza

P20-B Malampaya royalties seen

THE GOVERNMENT expects to rake in P20.23 billion in royalties from the Malampaya gas field this year, according to the Department of Budget and Management (DBM).

“The amount is P5.7 billion or 22% less than the P25.90 billion in gas royalties that the government earned from Malampaya in 2022,” Assistant Minority Leader and Surigao Del Sur Rep. Johnny T. Pimentel said in a statement.

The government expects to receive lower royalties from the Malampaya until 2026 due to the shrinking gas output from five existing production wells, Mr. Pimentel said.

According to the DBM’s Budget of Expenditures and Sources of Financing for next year, Malampaya royalties are estimated to be at P13.5 billion in 2024, and P8.5 billion each in 2025 and 2026.

“These are all approximate calculations. The actual royalties could still end up higher,” Mr. Pimentel said. “In fact, the government was expecting only P24.3 billion in royalties in 2022, but the actual money that came in was higher by P1.6 billion.”

President Ferdinand R. Marcos, Jr. in May renewed Service Contract (SC) 38 for the Malampaya for another 15 years or until Feb. 22, 2039.

The gas field is located 65 kilometers northwest of the island of Palawan. Gas is delivered through a 504-kilometer-long pipeline under the sea.

The Malampaya gas field is the country’s only indigenous commercial source of natural gas and is crucial to sustain the Philippines’ energy supply. However, it is expected to be commercially depleted by 2027.

Energy Secretary Raphael P.M. Lotilla said in July that the Malampaya consortium will start drilling new wells by the end of 2024, which is expected to secure gas supply by 2026.

The Malampaya Consortium is composed of Prime Energy Resources Development B.V., a subsidiary of Prime Infrastructure Capital, Inc. (Prime Infra), which has a 45% stake; UC38 LLC; and PNOC Exploration Corp. (PNOC-EC), which own a 45% and 10% interest, respectively. — Beatriz Marie D. Cruz

Marcos urges IPOPHL-WIPO collaboration to meet IP goals

PRESIDENT FERDINAND R. Marcos, Jr. has called on the Intellectual Property Office of the Philippines (IPOPHL) to work closely with the World Intellectual Property Organization (WIPO) in developing the Philippines’ IP regime, reiterating his push for innovation.

Reading the President’s speech at the World Intellectual Property Organization Asian Regional Conference, Trade and Industry Secretary Alfredo Pascual said IPOPHL is expected to “craft programs that will strengthen the country’s IP regime and contribute to our efforts in building the new Philippines that we aspire for.”

“I also urge everyone here to work together and harness the power of science, technology, and innovation as a catalyst for our post-pandemic transformation and our inclusive and sustainable development moving forward,” Mr. Marcos said in the speech.

With the Philippines ranking 59th in the last Global Innovation Index (GII), Mr. Marcos said the goal of his administration is to elevate the country to the top one-third of the world economy by 2028 in terms of the GII.

“We believe that by addressing gaps and challenges in innovation inputs and outputs indices as well as in making continued investments in our educational and research institutions, we will reach this dream in no time,” he said.

The President’s speech also mentioned the positive prospects for health innovation research in the country.

“I have the highest hopes that this conference — through the researchers’ findings and innovations as well as collaborations from the academe — would help create, discover, and adopt more impactful innovations for the benefit of our peoples and our global healthcare system,” he said.

The Senate has yet to pass a bill seeking to establish a national center for disease prevention and control, which is one of the administration’s priority legislative agenda. — Kyle Aristophere T. Atienza

Korean funded greenhouses set for turnover by November

THE DEPARTMENT of Agriculture (DA) said that it is set to turn over its smart greenhouse projects in Western Visayas and Northern Mindanao by November.

The DA said that officials from the Korean Agency of Education, Promotion, and Information Service in Food, Agriculture, Forestry and Fisheries also met with Agriculture Senior Undersecretary Domingo Panganiban to discuss updates on the project.

The project established 10 greenhouses in Iloilo and 11 in Bukidnon, and funded by Korean Ministry of Agriculture, Food and Rural Affairs.

The DA said that this was in an effort to improve yields and quality of high value crops through “innovative technologies.”

“Based on the final monitoring of project performance and development of sustainability plan, the EPIS team (said) that the project is successful,” the DA said. — Adrian H. Halili

MILF fighters kill 2 Dawlah Islamiya gunmen in clash

COTABATO CITY — Authorities are bracing for a possible retaliation by the Dawlah Islamiya terror group that lost two men in a clash with members of the Moro Islamic Liberation Front (MILF) in Maguindanao del Sur on Monday.

The 45-minute gunfight in Barangay Mother Tuayan in Datu Hoffer, Maguindanao del Sur erupted when Dawlah Islamiya terrorists intruded into an area where MILF members reside to collect money and food from farmers.

Timuay Anton Dian, Indigenous People’s Mandatory representative to the municipal council of Datu Hoffer, and Bangsamoro Parliament Member Froilyn Mendoza told reporters Tuesday around 40 Teduray families in houses around the scene of the encounter have relocated to safer areas.

“We are calling on government relief agencies to extend to them relief support,” Mendoza, who is an ethnic Teduray, said.

Col. Roel Rullan Sermese, director of the Maguindanao del Sur police, and Army Brig. Gen. Oriel Libres Pangcog of the 601st Infantry Brigade had confirmed the incident that resulted in the death of two Dawlah Islamiya members and assured the public of their intervention to prevent a repeat of the incident.

Officials of the municipal peace and order councils in Datu Hoffer and nearby Datu Unsay and Shariff Aguak towns told reporters Tuesday the Dawlah Islamiya members killed in the clash were cousins Muntas Samsudin Ansao and Salik Abdullah Mantato.

Moro datus and other sources in the community claimed that three other Dawlah Islamiya members were wounded.

They reported to the Army’s 6th Infantry Division in Camp Siongco in Datu Odin Sinsuat, Maguindanao del Norte that the Dawlah Islamiya terrorists involved in the clash were allegedly led by one Adbdulnasser Sangid Guinaid and a certain “Odic.” — John Felix M. Unson

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