dossiermanila

DESPITE RICE CRISIS,DOJ RULES TO ALLOW FOREIGN FIRMS TO EXPORT,ENGAGE IN RETAIL TRADE OF STAPLE

REMEMBER last year's months long crisis which saw mammoth crowds lining to purchase low quality rice?

Well, don't look know but a ruling by the justice department (DoJ) has authorized the government to allow the exportation of rice out of the country by foreigners.

In a four page opinion (DoJ Opinion No. 9,S. 2009) dated February 17 of this year,justice secretary Raul Gonzalez said it is within the authority of the National Food Authority (NFA) to allow the exportation of "special" or "fancy" rice varities by foreign and local entities.

These rice varities ,according to the opinion rendered upon the request of NFA Administrator Jessup P. Navarro includes glutinous,aromatic rice and those with "excellent and nutritive quality."

Navarro sought the legal opinion , the DoJ chief said, "in view of foreign investors' interests to participate in the development and production of rice in the country and to export the same to target markets abroad."

Gonzalez cited that under a Marcos presidential decree, PD No. 194 which the late strongman issued on May 17,1973, "allows an alien,association,partnership or corporation owned whole or in part by foreigners to engage in the rice industry" including activities such as the "production,warehousing,processing,milling,handling the distribution either wholesale or retail of rice."

The only limitation on the possible stranglehold by foreigners on the supply of local rice , the DoJ cited was a the provision of the said law requiring the transfer of at least 60% percent of such foreign firms to Filipino citizens over a period to be established by the now defunct National Grains Authority.

The NFA which succeeded the functions of the National Grains Authority in a resolution passed in 1998 allowed a 30-wait transition period before such foreign firms are required to turn over 60 percent to Filipinos.

"The conclusion is inevitable, therefore, that foreign investors may be authorized to cause the exportation of fancy or special rice provided that ,after 30 years from start of operation,their ownership shall not exceed a maximum of forty percent of the equity capital."###