The Department of Agriculture is hopeful the reduction of duties on imported rice to 15 percent from 35 percent will help drive down the retail price of the staple.
The Philippine Statistics Authority on Wednesday estimated the tariff cut redound to a reduction of P6 and P7 per kilo of rice sold retail. The PSA also estimated that in the May headline inflation of 3.9 percent, rice accounted for 1.7 percentage points. Rice also accounted for 3.7 percentage points to the 5.3 percent inflation for the bottom 30 percent income households.
“We will do everything within our power, especially those granted to the Department of Agriculture under the Price Act, to make sure the substantial cut in rice tariff will translate to a significant reduction in retail price of the grain,” Agriculture Secretary Francisco P. Tiu Laurel Jr.
Tiu Laurel said the DA will endeavor to fill the potential shortfall in the Rice Competitive Enhancement Fund, a P10 billion fund for farm mechanization, provision of better seeds, funding for technology enhancement and farmer training, and other financial support. Millions of rice farmers benefit from the Rice Fund which is set to end next year.
“Our priority is to ensure that our rice farmers will continue to benefit from the Rice Fund created under the Rice Tariffication Law, and confident it will be extended until 2030 to improve the lives of millions of impoverished rice farmers,” Tiu Laurel said.
According to him, the DA will also seek Congress’ support for a bigger budget for fertilizer subsidy as well as financial backing for the National Food Authority to maintain a reasonable buying price for palay to ensure that “rice farmers make a profit from their hard work.”
Tiu Laurel said both the NFA and the National Irrigation Administration are encouraged to continue with their contract growing projects to create a good market for rice farmers willing to join the program.
