NEDA to present rice price control options to PBBM
At A Glance
- The National Economic and Development Authority (NEDA) is exploring alternative measures to reduce rising rice prices instead of implementing a price cap.<br>NEDA Secretary Arsenio M. Balisacan suggests reducing the tariff on rice imports as a potential solution.<br>Balisacan and Finance Secretary Benjamin E. Diokno propose lowering rice tariffs, ranging from zero percent to 10 percent for both ASEAN and the most-favored nation (MFN), after Congress adjourns.<br>Balisacan emphasizes the need to consider reducing tariffs when world prices are rising sharply to prevent an adverse impact on retail, wholesale, and farmgate prices.<br>NEDA is closely monitoring global rice prices and the export volumes of major rice-exporting countries.<br>India's recent restriction on rice exports and external pressures from countries like Vietnam and Thailand contribute to the rise in global rice prices.<br>The NEDA chief acknowledges that El Niño may also play a role in the increasing global rice prices.
The National Economic and Development Authority (NEDA) said it will discuss with President Marcos other ways to reduce the rising prices of rice instead of using a price cap.
In a briefing on Thursday, Sept. 21, NEDA Secretary Arsenio M. Balisacan said the rice price ceilings imposed by the president will only be temporary, citing the need for the government to find a better option.
For one, Balisacan said that reducing the tariff on rice imports will help arrest the surge in prices.
“There are options, for example, we have made mention of reducing the tariff while world prices are rising,” the NEDA chief said.
Previously, Balisacan and Finance Secretary Benjamin E. Diokno suggested decreasing rice tariffs after Congress adjourns.
The economic managers proposed a reduction in the current 35 percent rice import tariff rates, ranging from zero percent to 10 percent for both ASEAN and the most-favored nation (MFN).
“Of course when the world prices are not rising, you don't want to reduce the tariff but when the world prices are rising sharply and you do not want that to come down to the level of markets for example the retail, or wholesale, or even at the farmgate,” the NEDA chief added.
Balisacan, meanwhile, said that they are closely monitoring global rice prices and the export volumes of major rice-exporting nations.
He cited the current situation in India, where rice exports have been recently restricted, and the external pressures faced by other exporting countries like Vietnam and Thailand.
“Other exporting countries like Thailand and Vietnam would also want to protect their local population from this external pressure and they may also decrease their exports so those are the ones that are causing prices in the global market to rise,” he further said.
Additionally, the NEDA chief acknowledged that El Niño could also be a factor contributing to the increase in global rice prices.