Negosyante News

September 25, 2024 10:26 pm

Delays in Agri Shipments Due to Storms, Disturbances — DA

The Department of Agriculture (DA) revealed on Tuesday that delays in the shipping and delivery of imported agricultural products, including large rice shipments, were caused by recent storms and weather disturbances, not port congestion as previously speculated.

Agriculture Secretary Francisco Tiu Laurel clarified that the delays were due to “force majeure,” according to data reviewed by the DA. This came after the Bureau of Customs (BOC) denied port congestion as the cause of delayed rice deliveries, despite over 888 shipping containers, containing approximately 20 million kilograms of rice, still being held at Manila ports.

In response, the DA is investigating companies linked to these containers. Tiu Laurel noted that some of the companies appear to no longer exist, but further investigation is underway to determine any potential liabilities.

The DA also plans to collaborate more closely with the BOC and Philippine Ports Authority (PPA) to improve the timing of agricultural imports and enhance food supply management. This partnership is intended to prevent artificial shortages caused by product hoarding and assist in blacklisting irresponsible importers.

The DA aims to tighten regulations on import permits to ensure that agricultural products are delivered promptly and reach the market. Meanwhile, PPA General Manager Jay Santiago committed to improving the monitoring of food shipments and reported that any overstaying containers could be declared abandoned by the BOC starting October 1.

Despite the shipment delays, the DA downplayed concerns over rice prices. DA Assistant Secretary Arnel de Mesa assured that the volume of delayed shipments is minimal compared to the total 3.9 million metric tons of imported rice, which should not significantly impact retail prices. Rice prices are already starting to decline, with imported well-milled rice dropping to ₱42 per kilo and local well-milled rice to ₱45.

Tiu Laurel expects further price relief by mid-October due to the reduction of rice import tariffs from 35% to 15%, with the full impact expected by January 2025.

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