When importation is not restricted


Early this year our government issued a new ruling that rice can be imported with no restrictions as long as the tariff is paid. Importers jumped the gun and instantly flooded the market with imported rice. Understandably the price of rice would go down and that’s what happened. Now the local farmers are crying foul due to the pitiable condition of the rice industry that the selling price has gone down 50%. That would kill the industry.


From the outset, it is already obvious that the market will be flooded with imported goods. So what would happen to the local industry that couldn’t compete with the imported goods? What they say is the high tariff of importation so it will be regulated. However, it should not be forgotten that smuggling can evade the high tariff and thereby the flooding of the market will continue.