By Prince Golez
President Ferdinand Marcos Jr. has opposed the proposal to temporarily implement rice tariff reduction to address the surge of rice prices.
This is not the right time to lower tariffs, Marcos Jr. said, adding that the projection of world rice prices is that it will go down.
“We decided with the agriculture and economic managers that … it was not the right time to lower the tariff rates… Tariffs are generally lowered when the price is going up,” according to him.
The President made the remarks following a sectoral meeting on Tuesday in Malacañang where NEDA presented updates on the proposed rice tariff reduction.
Some farmer groups raised concern over some negative effects should rice tariff reduction be adopted.
Importers, they said, would primarily benefit the proposal “because they are already undervaluing rice” and will only “further depress” palay prices and discourage farmers from expanding their future production.
Earlier, the NEDA recommended a reduction in the tariff imposed on imported rice to help lower local rice prices in the market and lead to the simultaneous lifting of Executive Order No. (EO) 39, imposing the mandated price ceilings on regular and well-milled rice nationwide.
But, during the said meeting, NEDA Secretary Arsenio Balisacan and Agriculture Undersecretaries Leocadio Sebastian and Mercedita Sombilla agreed not to lower tariff rates, citing the downtrend of rice prices in the world market.
Under EO 39, the mandated price ceiling on regular rice is at P41per kilogram while the mandated price cap on well-milled rice is at P45 per kilogram.
When asked if the government will lift EO 39, Marcos Jr. said it will remain in effect as they have to study the matter carefully.
“Pag-aralan natin mabuti,” he furthered.
The Chief Executive has ordered the Department of Social Welfare and Development to provide P15,000 cash aid to small rice retailers affected by the rice price caps.
