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President Ferdinand Marcos, Jr. thumbed down the proposal to temporarily cut tariff on rice imports to address the surge in rice prices
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Marcos said it is “not the right time” to lower tariff
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Implementation of rice price caps will remain in effect, he said
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Farmer groups raised concerns on the potential negative impact of lowering rice tariffs
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Marcos asserted there is sufficient rice supply in the Philippines, blaming smuggling and hoarding for affecting the market
President Ferdinand Marcos, Jr. has rejected the proposal to temporarily cut tariffs on rice imports, saying now is “not the right time” to do so.
“We decided with the agriculture and economic managers that … it was not the right time to lower the tariff rates because the projection of world rice prices is that it (sic) will go down,” Marcos said in a statement.
“So, this is not the right time to lower tariffs. Tariffs are generally lowered when the price is going up,” he added.
The decision followed a sectoral meeting held on September 26 with the National Economic and Development Authority (NEDA), Department of Finance (DOF), Department of Trade and Industry, and Department of Budget and Management.
According to Malacañang, NEDA director-general Arsenio Balisacan and Agriculture undersecretaries Leocadio Sebastian and Mercedita Sombilla concurred it was inappropriate to lower tariffs due to the decreasing trend of rice prices in the global market.
DOF and NEDA earlier proposed to temporarily cut tariffs on rice imports from the current 35% to zero to a maximum of 10% to arrest the surge in rice prices. Finance Secretary Benjamin Diokno explained this proposal was part of a larger strategy to mitigate the negative impact of price controls on rice retailers and farmers.
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President Marcos, on August 31, signed Executive Order (EO) No. 39 imposing price ceilings of ₱41 per kilogram for regular milled rice and ₱45 per kg for well-milled rice.
Asked whether the government would lift the implementation of EO 39, Marcos said it would remain in effect as they needed to first carefully assess the situation.
Some farmer groups raised concerns on the proposed lowering of rice tariff, saying it would exert downward pressure on farmgate prices of unmilled rice, benefiting mostly rice importers already supposedly undervaluing rice. The move would further depress palay prices and discourage future production expansion, they cautioned.
Samahang Industriya ng Agrikultura chairman Rosendo So earlier said tariff reductions did not guarantee lower retail prices for rice.
In a separate statement, Marcos reiterated there was adequate supply of rice in the Philippines.
“Sapat ang supply ng bigas dito sa Pilipinas. Ang kailangan lamang po ay ang maayos na pamamahala ng produksyon at bentahan nito (Rice supply is adequate in the Philippines. What we need to do is ensure correct administration of production and sale),” he said, blaming smugglers, hoarders and price manipulators for disrupting the balance of rice supply and pricing in the market.
