Farmers’ group laments another cut in tariff on imported rice

On Saturday, the Palace announced that President Rodrigo Duterte had signed a decree that will once again lower the tariff on imported rice.

But according to the Philippine Statistics Authority (PSA), the total rice harvest in the first quarter of the year is 4.6 million metric tons. This is higher than the harvest in the first quarter of 2019 and 2020.

The influx of imported rice also continued, according to Agriculture Secretary William Dar.

So the farmers wonder if there is no problem with the supply, the purpose of Executive Order 135, which lowers the tariff or tax on imported rice to 35 percent from the current 40 percent to 50 percent for countries outside ASEAN.

Previously, the lower 35 percent tariff was imposed only in ASEAN countries.

“We need to diversify the country’s market sources. We need to augment rice supply from cheaper sources and maintain prices that are affordable so that this will reduce pressures on inflation,” said Dar.

But as a result, the rice competitiveness enhancement fund (RCEF) for farmers who take advantage of the collected rice tariff will be reduced.

Farmers’ group laments another cut in tariff on imported rice

It is said that the price of rice will also fall.

“Pag bumaba ‘yung wholesale price dahil sa mas murang imported kailangang bumaba rin ‘yung palay para hindi malugi ‘yung trader, mag-a-adjust po sila ng presyo… In 1 year we produce a total of 19 million tons of palay, that’s about 19 billion kilos of play, so just imagine P1 lang po na pagbaba ng palay, the farmers will be losing P19 billion,” said Raul Montemayor, national manager of Federation of Free Farmers.