QUEZON CITY — Agriculture Secretary Francisco P. Tiu Laurel Jr. said Tuesday the Cabinet will discuss an upcoming executive order aimed at cutting import duties on rice after agricultural stakeholders aired their apprehensions over the impact of the impending tariff reduction.
The proposed EO will implement a sharp reduction in rice tariffs to 15 percent from the current 35 percent. This decision by the NEDA Board, chaired by President Ferdinand Marcos Jr., aims to alleviate the strain of high rice prices on consumers, particularly the poor, and to curb inflation, which has prevented the central bank from lowering interest rates.
Despite the NEDA Board decision, President Marcos has yet to issue the executive order, providing a window of opportunity for stakeholders in the agricultural sector to voice their concerns. Secretary Tiu Laurel acknowledged the industry’s apprehensions, emphasizing the need for periodic reviews rather than maintaining a fixed reduction until 2028.
“In our discussions with industry representatives, the suggestions ranged from reviewing the tariff every six months to one year, or even every four months,” Sec. Tiu Laurel told reporters at the sidelines of Up Close and Personal, organized by World Trade Center Metro Manila.
The DA chief highlighted concerns raised by industry players regarding the likelihood the tariff reduction won’t result in significantly lowering rice prices as well as their apprehension that lower prices could adversely affect local farmers since traders could lower buying prices for palay.
Moreover, the reduction in tariff revenues could impede funding allocated for programs aimed at modernizing and mechanizing the rice industry, thereby jeopardizing efforts to enhance its competitiveness.
Industry players have warned that the assumption that rice prices will remain high until 2028 may not hold true if global market dynamics change. They said global prices of the grain could drop if, for nstance, India lifts its export ban non-basmati rice and production rebounds after El Niño.
Sec. Tiu Laurel said a balanced approach that considers both consumer welfare and the viability of local agriculture should be considered by the Cabinet when the tariff reduction issue is discussed. (DA)
