THE Philippines will not import as much rice this year compared to the US Department of Agriculture’s (USDA) projection, despite the tariff cut.
“I don’t think the reduction of tariffs will increase importation… it’s basically demand-driven,” Agriculture Secretary Francisco Tiu Laurel Jr. said during the post-State of the Nation Address (SONA) forum in Pasay City.
“I really don’t think we will reach 4.7 [million metric tons],” Tiu Laurel added, referring to the USDA’s forecast that the country’s rice imports will reach 4.7 million metric tons (MT) this year.
In the July edition of its monthly Grain: World Market and Trade report, the USDA cited the Philippines’ move to slash the rice import tariff rate to 15% from 35%, “in response to rising domestic consumer prices,” noting that the country’s rice imports will rise with the tariff reduction.
Data from the Bureau of Plant Industry showed that as of the first seven months of 2024, the Philippines has so far imported 2.37 million MT of rice.
President Ferdinand Marcos Jr.’s Executive Order 62, which reduced the import tariff rates on rice and other agricultural products, has been questioned before the Supreme Court.
The petitioners argue that the order makes the country’s economy dependent on importation, saying that this is against state policy to develop a self-reliant and independent national economy.
The DA, in its defense, said the price of imported rice may decrease by P6 to P7 per kilo due to the order.
Rice inflation, as of June this year, stood at 22.5%, albeit lower than the 23% in May, but still at a high double-digit level.
In recent months, rice inflation has reached its highest levels in about 15 years, blamed on the high prices of the agricultural commodity in the world market, brought about primarily by India’s export ban on its white basmati rice. (GMA Integrated News)
