Philippines
National
Reduced tariffs on rice unlikely to increase importation—DA chief
Reduced tariffs on rice unlikely to increase importation—DA chief
By Jel Santos
Department of Agriculture (DA) Secretary Francisco “Kiko” Tiu Laurel Jr. said that lowering tariffs will not lead to higher rice imports this year, contrary to the US Department of Agriculture's forecast of 4.7 million metric tons for the Philippines.
By enacting Executive Order (EO) 62, President Marcos has lowered rice tariffs from 35 percent to 15 percent.
“Well, iyong unang estimate ng US-DA was four million. I am actually surprised na nag-increase to 4.7. But I don’t think that lowering of tariff will really increase importation (Well, the initial estimate of the US-DA was four million. I am actually surprised that it increased to 4.7. But I don’t think that lowering the tariff will really increase importation),” he said during the post-SONA discussions on Tuesday, July 23.
Laurel said that the decrease in tariffs has no bearing on the growth in rice imports.
“The only reason mag-i-increase ang importation is because of demand, not because of lowering tariff. If there’s kulang, ang demand, kahit mababa, kahit zero tariff pa iyan, mas kaunti ang importation (The only reason importation will increase is because of demand, not because of lowering the tariff. If there's a shortage, demand will be low, and even with low or zero tariffs, importation will still be minimal),” he stated.
“So it’s basically demand-driven. So I really don’t think aabot tayo ng 4.7 [million metric tons],” he went on.
The DA anticipates that rice retail prices could fall by P6 to P7 by August due to the influx of rice imports entering the country after the national government cut rice tariffs.
Assistant Secretary Arnel de Mesa, the spokesperson of the DA, noted that 35,594 metric tons of rice imports had arrived in the country as of July 11.
Farmers' groups had earlier expressed concerns about EO 62, fearing it might lead to an influx of imported rice.
They worry that if prices for rice, hogs, corn, and chicken fall below production costs, local producers may lose motivation to continue their work.
The groups also said that EO 62 will not tackle inflation or reduce rice prices in the market.
However, the DA chief explained that the tariff reduction was essential to counteract high global rice prices and offer consumers temporary relief through lower rice prices.