Rice prices still high despite lower tariffs
The price of locally produced and imported rice retailed at around P50 a kilo in some public markets in Metro Manila despite lower import duties on the staple, likely due to traders still unloading their stock purchased at the higher tariff rate.
Local regular milled rice was sold from a low of P45 per kilogram to a high of P51 per kg as of Friday, compared to P39 to P45 per kg during the same period last year, according to a price monitoring report by the Department of Agriculture (DA).
Local well-milled rice ranged from P47 to P55 per kg from last year’s P41 to P47 per kg.
The DA also noted that imported regular milled rice was priced from P42 to P50 per kg. This variety was not available around the same time a year prior.
Imported well-milled rice was more expensive at P45 to P55 per kg, compared to P45 a kilo in the past year.
Agriculture Secretary Francisco Tiu Laurel Jr. said last month that consumers would feel the impact of tariff reduction by October as traders were still disposing of their old stocks which they brought in at higher duties.
“Traders are expected to dispose of their old stocks by about mid-October, which they purchased at higher prices,” he told reporters.
Farm inputs
Tiu Laurel had also said global rice prices remained high amid India’s ban on rice exports while Indonesia and Malaysia were building up their buffer stocks.
Agriculture Assistant Secretary Genevieve Velicaria-Guevarra said the agency had provided additional farm inputs to boost production and eventually lower the retail prices of other basic commodities by next year.
The country imported 3.8 million metric tons of rice in 2022 and 3.6 million mt in 2023 under the old tariff rates.
In June, President Marcos signed Executive Order No. 62 which slashed duties on imported rice and retained low tariffs on other commodities such as pork and corn until 2028. His order sought to augment supply, manage prices and temper inflationary pressure of commodities.
The new tariff rates would be applied to imports starting July 5.
Import data
According to Bureau of Plant Industry rice import data, 167,403.84 mt of rice arrived in July, 361,720.20 mt in August and 38,068.02 mt as of Sept. 5. The total amount of imported rice under the new tariff is about 15.7 percent of last year’s imports.
The DA has not said whether the volume of the July-Sept. 5 imports would immediately affect rice prices in the markets this month although it observed a downward trend in prices during a visit to markets including Guadalupe Market, Farmers Market, and Nepa Q Mart.
“A huge factor here was the reduction of rice tariff rates from 35 percent to 11 percent. Our retailers and consumers are happy as they can buy rice for P42 to P45 per kilo,” said Orly Manuntag, founder of Philippine Rice Industry Stakeholders Movement.
The DA earlier launched the P29 rice program to sell rice for P29 per kg to vulnerable sectors including senior citizens, single parents, persons with disabilities, and Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries.
It also unveiled the Rice-for-All program wherein the general public can purchase local or imported well-milled rice from select Kadiwa sites in Metro Manila for P45 a kilo. INQ
