Speaker, solons believe tariff cut for imported rice will lower prices
MANILA, Philippines — House of Representatives Speaker Ferdinand Martin Romualdez and other lawmakers believe that President Ferdinand Marcos Jr.’s move to cut tariffs imposed on imported rice would eventually decrease prices, making it more bearable for consumers.
In a statement on Wednesday, Romualdez said Marcos’ move would bring down rice prices significantly without affecting the assistance provided to local rice farmers.
Under Republic Act No. 11203 or the rice tariffication law (RTL), part of the tariff on imported rice goes to the Rice Competitiveness Enhancement Fund (RCEF), which is then used to help farmers and equip them with modern technologies.
According to Romualdez, the RCEF has accumulated P16 billion from import tariff collections, which means farmers can be assured of enough funding.
“The import levy reduction and the direct sale of imported rice by the government through its Kadiwa centers should bring down the retail price of rice substantially, especially for consumers,” Romualdez said.
“This means that the government has enough funds to help farmers, while it is trying to bring down rice prices through the import tariff cut and direct Kadiwa sales,” he added.
Meanwhile, Basilan Rep. Mujiv Hataman said this move was needed because a huge part of inflation rates can be attributed to increased rice prices.
“Rice is life for us Filipinos. And if it is so expensive and only the rich can buy it, then our country has a huge problem. For me, rice is supposed to be somewhat of a great equalizer. This is a Filipino staple. Rich or poor, all of us have rice on our table. But now, it seems poor families cannot afford the price of rice and other food products,” Hataman said.
“I hope this really results in a lower rice price, because this should be made affordable to the poorest of the poor. If they cannot buy this, what can they purchase? According to reports, almost half of our inflation rate is borne out of rice inflation, because many believe that if rice prices are high, other commodities like vegetables, fish, and other food products follow suit,” he added.
For their part, members of the House’s youth movement — Zambales 1st District Rep. Jay Khonghun, PBA Party-list Rep. Migs Nograles, La Union 1st District Rep. Francisco Paolo Ortega V, and Davao Oriental 2nd District Rep. Cheeno Miguel Almario — also heaped praise on the President’s decision.
“It is a clear indication of his administration’s focus on making essential commodities affordable and accessible to all Filipinos. This move will help stabilize rice prices and prevent any potential supply issues,” Khonghun said.
“This policy will provide immediate financial relief to families struggling with high food costs and contribute to overall economic stability,” Nograles added. “President Marcos has shown his commitment to addressing the needs of our people.”
Ortega and Almario meanwhile said the intervention was timely and a step in the right direction.
“By lowering the cost of rice, we are ensuring that every Filipino has access to this staple food at a reasonable price. This is a step in the right direction towards achieving food security,” Ortega said.
“It reflects his administration’s dedication to improving the lives of ordinary Filipinos. This policy will help mitigate the effects of inflation and ensure that rice remains affordable for everyone,” he added.
On Tuesday, Socio-economic and Development Secretary Arsenio Balisacan said that the President had already approved the reduction in the tariffs on rice, coal, and other basic commodities.
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%
Romualdez however noted that long-term solutions are still needed, like amending the RTL.
“We should find a long-term solution to the rice price issue,” Romualdez said.
Last May 21, the House approved House Bill No. 10381, a proposal seeking to amend the RTL, to restore some of the National Food Authority (NFA) functions.
READ: House amendments to rice tariff law approved on 3rd reading
If signed into law, 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.
