The government on Tuesday committed to act quickly and come to the defense of farmer incomes should rice prices drop more than 12 percent from where they are at present, according to the Department of Agriculture (DA).
Agriculture Secretary Francisco Tiu Laurel, in recognition of the political importance of the staple, said he will recommend increasing the tariff on rice should it retail from around P42 to P45 a kilo, for instance. The well-milled commodity retails from P48 to P55 a kilo at present while the regular milled variety sells from P48 to P52 a kilo.
Secretary Tiu Laurel Jr., bared this commitment at a forum hosted by the Philippine Chamber of Commerce and Industry in Taguig City Tuesday, pointing out that Executive Order 62 permits a review of the tariff on rice four months from when the mandate becomes effective.
EO 62 reduced the tariff on agricultural commodities, especially rice imports which are now levied only 15 percent from 35 percent beginning July.
“The review will make sure that in case retail prices go down and consumers are satisfied, then we may increase tariff rates. So it is very timely to review by November as world prices could be lower as India is expected to lift the rice export ban,” Tiu Laurel said.
He stressed such an increase would only be possible if rice retail prices drop.
“We’re not saying we will leave the farmers alone. We have a program for giving more inputs to farmers to augment their costs,” Tiu Laurel said.
Based on DA’s monitoring of public markets in the National Capital Region, the price of local well-milled rice ranges from P48 to P55 per kilo and regular milled variety from P48 to P52 per kilo.
Imported well milled rice sells from P52 to P55 per kilo while imported regular milled rice sells from P48 to P51 per kg.
Imported special variety rice sells from P57 to P65 per kilo while premium imported rice sells from P52 to P62 per kilo.
Local special variety rice costs P57 to P65 per kilo and premium from P52 to P58 per kilo.
