MANILA: The Department of Agriculture (DA) on Wednesday pledged to study and conduct consultations on the proposed tariff cut on imported rice to help reduce its price in the local market.
“Kung ire-reduce ng (If it will be reduced to) 17.5 percent from the current na 35 percent tariff, ang epekto noon ay parang PHP4 to PHP5 na ma-reduce iyong presyo ng imported na rice (its effect may be a reduction of PHP4 to PHP5 in the price of imported rice),” DA Assistant Secretary Arnel De Mesa said in an interview.
De Mesa said a tariff reduction may also have minimal impact on farmers if approved in June or July, in time for the lean months during the wet season from August to September.
“Hindi naman masyadong maapektuhan iyong mga magsasaka dahil papasok iyong mga imported (Our farmers will not be severely affected because the imported rice will enter) during the lean months,” he said.
“Ang protection nila for now at least iyong buying price ng (Their protection, for now at least, is the buying price of) NFA is
still PHP23 per kg. to PHP30 per kg. Unless the NFA Council decides to lower the procurement prices, eventually it will cause an impact to farmers.”
To date, the average buying price of palay is PHP26.90 per kg., according to the National Food Authority (NFA).
Higher tariff, more aid to farmers
On the other hand, Senator Cynthia Villar said they are expecting higher tariff imposition to secure more aid to farmers through the Rice Competitiveness Enhancement Fund (RCEF).
“Ang assumption namin, 35 percent. Syempre kapag mas malaki ang tariff, mas madami ang mabibigay sa mga local farmers (Our assumption is at 35 percent. Of course, with a higher tariff, more benefits could be given to farmers),” she said in a separate ambush interview.
Under the Rice Tariffication Law (RTL), the government allocates PHP10 billion for RCEF from tariffs, with the excess collection placed under the Rice Farmers Financial Assistance (RFFA).
In 2023, the country was able to collect PHP29.9 billion, with the excess granted to f
armers through the RFFA.
De Mesa noted that a lower tariff would only affect the excess collection, which will be for RFFA.
There is a need to closely study both the advantages and disadvantages of the proposal, he added.
“It is a balance between ano iyong makukuha ni farmer at ano iyong makukuha ng general public doon sa pagbaba ng presyo ng bigas (what the farmers and the general public would get from a drop in rice prices),” De Mesa said.
As of Wednesday, the retail price per kg. of imported well-milled rice in Metro Manila stood at PHP52 to PHP55. and for imported regular milled rice, PHP49 to PHP51, according to the DA-Bantay Presyo.
Source: Philippines News Agency
