Jose Alejandrino Exposed How Smugglers & Hoarders Connived with Corrupt Customs Officials Resulting to Rice Mess
Veteran columnist and political analyst Jose Alejandrino exposed how the rice smugglers and rice hoarders in the Philippines connived with corrupt Customs Officials resulting to the rice mess or the increase of prices and often non-availability of stocks.
Jose Alejadrino admitted that he was intrigued why the Bureau of Customs seized the imports of bona fide traders.
The veteran author examined what the President had decided so far in response to the controversial surging of rice prices and the unavailability of NFA rice in the country. Pres. Duterte already approved the importation of rice which he understand came from Thailand and Vietnam to replenish NFA buffer stocks.
Pres. Duterte on his two meetings with rice traders and millers, the President agreed to remove the quota system and allow them to import, subject to the payment of correct customs duties, to cover the shortfall in agricultural production of rice.
Here's the Complete Statement of Jose Alejandrino:
WHO BLOCKED?
By: Jose Alejandrino
In previous postings, I wrote about inflationary pressures brought by the shortfall in the agricultural production of rice, the need for rice buffer stocks as a strategic reserve, and recently, the untangling of the rice mess.
What still intrigues me is why Customs seized the imports of bona fide traders.
Let us examine what the president had decided.
1. In response to the NFA request, Duterte approved the importation of rice which I understand came from Thailand and Vietnam to replenish NFA buffer stocks.
2. In two meetings with rice traders and millers last April, Duterte agreed to remove the quota system and allow them to import, subject to the payment of correct customs duties, to cover the shortfall in agricultural production of rice.
3. According to NFA Administrator Jason Aquino, the NFA Council was not too hot on NFA importing because it wanted private sector traders to handle importation and had therefore ignored his requests to import to replenish NFA's buffer stocks which obliged NFA to refer the matter directly to the president for approval.
Therefore, I imagine what president had in mind is a hybrid system - replenishment of NFA buffer stocks and out of quota importation by the private sector - to ensure the adequate supply of rice and prevent inflationary pressures.
So who would have a motive to block imports by bona fide private rice traders as I understand happened with imports of some traders?
The NFA Council? Most likely because the Council favored, by Jason Aquino's own admission, importation by private sector traders.
The NFA? Its source of buffer stocks came from local farmers but because private traders paid higher farm gate prices the NFA now had to import to replenish its stocks. If it obtained its imports on a government-to-government basis, presumably it would be at a lower price than what private traders could obtain on the open rice market abroad. Therefore, private sector traders would not pose a threat to them by way of competition. So where is its motive to block imports of private traders?
By a process of elimination, my guess is the only ones who would have a motive to block private sector imports would be smugglers and hoarders because imports would stabilize rice prices by ensuring a steady and adequate supply of rice. Stabilization would not be good for their business. It would only increase their risk factor by smuggling and hoarding.
Which brings us to the next question. How could smugglers and hoarders block private imports unless they are in cahoots with corrupt customs officials?
Source: Jose Alejandrino
Jose Alejadrino admitted that he was intrigued why the Bureau of Customs seized the imports of bona fide traders.
The veteran author examined what the President had decided so far in response to the controversial surging of rice prices and the unavailability of NFA rice in the country. Pres. Duterte already approved the importation of rice which he understand came from Thailand and Vietnam to replenish NFA buffer stocks.
Pres. Duterte on his two meetings with rice traders and millers, the President agreed to remove the quota system and allow them to import, subject to the payment of correct customs duties, to cover the shortfall in agricultural production of rice.
Here's the Complete Statement of Jose Alejandrino:
WHO BLOCKED?
By: Jose Alejandrino
In previous postings, I wrote about inflationary pressures brought by the shortfall in the agricultural production of rice, the need for rice buffer stocks as a strategic reserve, and recently, the untangling of the rice mess.
What still intrigues me is why Customs seized the imports of bona fide traders.
Let us examine what the president had decided.
1. In response to the NFA request, Duterte approved the importation of rice which I understand came from Thailand and Vietnam to replenish NFA buffer stocks.
2. In two meetings with rice traders and millers last April, Duterte agreed to remove the quota system and allow them to import, subject to the payment of correct customs duties, to cover the shortfall in agricultural production of rice.
3. According to NFA Administrator Jason Aquino, the NFA Council was not too hot on NFA importing because it wanted private sector traders to handle importation and had therefore ignored his requests to import to replenish NFA's buffer stocks which obliged NFA to refer the matter directly to the president for approval.
Therefore, I imagine what president had in mind is a hybrid system - replenishment of NFA buffer stocks and out of quota importation by the private sector - to ensure the adequate supply of rice and prevent inflationary pressures.
So who would have a motive to block imports by bona fide private rice traders as I understand happened with imports of some traders?
The NFA Council? Most likely because the Council favored, by Jason Aquino's own admission, importation by private sector traders.
The NFA? Its source of buffer stocks came from local farmers but because private traders paid higher farm gate prices the NFA now had to import to replenish its stocks. If it obtained its imports on a government-to-government basis, presumably it would be at a lower price than what private traders could obtain on the open rice market abroad. Therefore, private sector traders would not pose a threat to them by way of competition. So where is its motive to block imports of private traders?
By a process of elimination, my guess is the only ones who would have a motive to block private sector imports would be smugglers and hoarders because imports would stabilize rice prices by ensuring a steady and adequate supply of rice. Stabilization would not be good for their business. It would only increase their risk factor by smuggling and hoarding.
Which brings us to the next question. How could smugglers and hoarders block private imports unless they are in cahoots with corrupt customs officials?
Source: Jose Alejandrino
Jose Alejandrino Exposed How Smugglers & Hoarders Connived with Corrupt Customs Officials Resulting to Rice Mess
Reviewed by Phil Newsome
on
August 29, 2018
Rating:
Reviewed by Phil Newsome
on
August 29, 2018
Rating:
