Romualdez: Tariff cut won’t flood market with rice imports
MANILA, Philippines — President Ferdinand Marcos Jr.’s approval of the reduced tariff rates for certain basic products would not result in a deluge of imported rice, House of Representatives Speaker Ferdinand Martin Romualdez said on Thursday.
Romualdez, in a press briefing after meeting rice industry stakeholders, said the rate of the country’s rice importation would remain the same. He said the tariff cut is aimed at absorbing the impact of the high rice prices in the world market.
“‘Binababa lang yung tariff rate. ‘Yong pag-iimport hindi na ‘yon babaha kasi there’s a regular flow of imports. ‘yong pumapasok na bigas ay sapat lang talaga, hindi naman babaha, ‘yong maa-adjust lang ay ‘yong taripa,” he said.
(They are only trying to reduce the tariff rates. There would be no flooding of imported rice because there’s a regular flow of imports. What goes into the country is enough, only the tariff was adjusted.)
Romualdez said importation is meant to bridge the shortfall in supply and the tariff cut is intended to mitigate the effects of the spike in the world market price of rice on local prices.
Spike in world market prices
Romualdez also reiterated that support to the farmers would continue, as the provision of assistance through the Rice Competitiveness Enhancement Fund (RCEF) would be maintained.
Tariff collections from imported rice are directed into the RCEF, as required by Republic Act No. 11203 or the Rice Tariffication Law (RTL).
“Our support to the farmers will continue, through the subsidies to farmers who are a very important part of the whole sector, the industry,” Romualdez said. “We support them, the subsidies will continue, they are a very, very important part of the agriculture sector, particularly for rice production.”
“So rest assured…that there would be no flooding (of imports) because the flow of (imported) rice will stay as it is. The protection for our farmers through subsidies will continue […] So there’s nothing to worry there,” he added.
Last Tuesday, Socio-economic and Development Secretary Arsenio Balisacan said the President had approved the reduction in the tariffs on rice, coal, and other basic commodities.
Comprehensive Tariff Program
Balisacan said the President, who chairs the National Economic and Development Authority board, approved the new Comprehensive Tariff Program for 2024-2028, which calibrates tariff rates until 2028.
READ: Marcos approves cut in rice tariff to 15%
On Wednesday, Romualdez and other lawmakers said they believe the rice tariff rate cut would result in the lowering of the staple’s prices in the local market. However, the Speaker maintained that there is still a need for long-term solutions to the country’s rice issues— particularly amendments to the RTL.
Last May 21, the House approved House Bill No. 10381, a proposal seeking amendments to the RTL, to restore some of the National Food Authority’s (NFA) functions.
READ: House amendments to rice tariff law approved on 3rd reading
If signed into law, the NFA will have the “authority to oversee and ensure compliance with all pertinent standards and regulations, leveraging its established expertise and nationwide network to uphold the national interest, in rice buffer stocking and food security,” by placing a new Section 5 in R.A. No. 8178.
