President Ferdinand Marcos Jr. is considering lowering import fees on rice to make food more affordable and stabilize prices, in light of new agricultural laws. This possible change comes after Executive Order No. 62, which already cut the rice import fee from 35% to 15% to help control rising prices.
Agriculture Secretary Francisco Tiu Laurel Jr. stated that the goal of this policy is to make rice cheaper for everyone. While rice prices have started to go down in October, a bigger drop is expected by January 2025 due to lower demand during the holiday season and a boost in imports. However, earlier delays in price reductions were caused by traders hoarding rice in case of shortages due to El Niño.
From December 2023 to May 2024, the country imported an average of 422,000 metric tons of rice each month, which was 102,000 metric tons more than what was consumed. This extra rice was imported at the higher fees and has created stockpiles that could last two months. After the fee reduction, imports initially dropped but have started to rise again, reaching 385,000 metric tons in August.
Tiu Laurel also noted that global factors are affecting rice prices, like strong demand from nearby countries such as Malaysia and Indonesia, and price increases from major rice exporters like Thailand and Vietnam. Adjustments in Myanmar’s prices have helped a bit, but the situation continues to change.
At the same time, local farmers are seeing inconsistent prices for palay (harvested rice), ranging from P16 to P30 per kilogram, and there are efforts to ensure fair trading practices. The government aims to keep a close eye on these developments to protect local farmers while also considering the needs of consumers.
Some critics, including various agricultural groups, have filed a petition with the Supreme Court to stop the reduction in import fees. However, officials from the National Economic and Development Authority (NEDA) believe that this move could eventually help reduce inflation and lower rice prices, even if the positive effects take a while to show.
This situation highlights the government’s challenge in supporting local farmers while making sure rice remains affordable for Filipino families, especially given the challenges both locally and around the world.
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