DA: Rice price should be P30/kg due to tariff cut, lower global prices

Department of Agriculture (DA) logo with rice and some high-value crops. INQUIRER FILES

MANILA, Philippines — The average price of rice should now be at around P30 per kilogram due to a tariff cut and lower international prices, a Department of Agriculture (DA) official said on Tuesday.

Asis Perez, DA undersecretary for policy, planning, and regulations, admitted before the House joint committee that this failed to materialize despite these factors.

In June, President Ferdinand Marcos Jr. signed Executive Order (EO) No. 62,  mandating a rice tariff reduction from 35 percent to 15 percent, which took effect in July.

However, Marikina Rep. Stella Quimbo noted that the average quarter local rice prices only went down from P51.12 to only P50.68 in the next quarter after the EO took effect.

READ: Quimbo: Tariff cut didn’t lower rice prices, only revenue losses

For her part, Perez said in Filipino: “We observed that not only did the tariff go down but also the price of rice in the international market in previous months. And we also noticed that the committee’s conclusion is right: The lower price in the international market and our reduced tariff did not reflect the current price of the rice in our market.”

Considering this, ACT-CIS Rep. Erwin Tulfo wondered why the price range of rice remained at P50 per kilogram.

“If the price went down in the international market and our tariff also went down, the price should have plummeted very much. In our computation, the highest price of rice should be P30 per kilo for broken rice and not for well-milled. Otherwise, it should be ranging from P30 to 35 [for well-milled]. But why is it still at P50 per kilo?” Tulfo said in Filipino.

Tulfo noted that, based on his observation during inspections with House Speaker Martin Romualdez, the lowest price of rice was P44 per kilogram, but there was a limit as to how many kilograms a customer could buy.

“You are correct in saying that, looking at the international process plus the reduced tariff, the lowest price of rice should not be at P44 per kilo. We should see around P30 per kilo range, but that is not what’s happening,” Perez said.

Tulfo then asked Perez if the DA would recommend retaining the 35 percent rice tariff as the government was losing billions of pesos in revenue without consumers reaping the benefits.

Vincent Philip Maronilla, assistant commissioner of the Bureau of Customs, said the government had lost P12 billion in revenue since July.

In response to Tulfo’s question, Perez said that the National Economic Development Authority (NEDA) recommended that the tariff cut should only last until February.

“It appears in news reports that the current 15 percent tariff will only last until February, and it is proper because March is the [beginning] of the harvest season,” Perez said.

He noted that the Marcos EO mandated a periodic review of the policy every four months, and the NEDA along with DA will conduct this review on Wednesday.