Marcos optimistic rice prices will ease further
Credit to Author: Alexis Romero| Date: Wed, 25 Sep 2024 00:00:00 +0800
MANILA, Philippines — President Marcos yesterday expressed confidence that rice prices in the Philippines would continue to go down, just like the trend being seen in neighboring countries.
During a sectoral meeting that tackled inflation outlook and management strategies at Malacañang, Marcos said the price of the food staple in the country appears to be following the government’s projection.
“And it seems to be consistent again with the same experience of other ASEAN countries like Thailand and Vietnam,” the President said.
“So, I think as the time goes on, that should improve,” he added.
In a statement, the Presidential Communications Office said rice prices in Vietnam and Thailand have eased, with the landed cost of the imported food staple declining by 15 percent or about P7 per kilogram as of mid-September, following the implementation of lower tariffs under Executive Order No. 62. The order slashed rice tariff from 35 percent to 15 percent effective July 8.
Last week, Agriculture Secretary Francisco Tiu Laurel Jr. said rice prices are expected to start declining in October because of the reduced tariff.
The full impact of the tariff adjustment may be felt in January, the agriculture chief added. The government expects the tariff cut to reduce the price of rice by P5 to P7 per kilogram.
“But the full effects, for me, range from P5 to P7 so I will put it at P5 reduction in price. If the rice costs P52 per kilo now so by January it should be at P47. If the rice costs P59 now, it should be P45 by January. Those are my estimates,” said.
“But since demand for food usually spikes in December, we anticipate seeing a more substantial drop in rice prices by January,” Tiu Laurel noted.
He explained the expected drop in rice prices has not yet fully materialized because traders hiked rice imports in anticipation of an El Niño-driven supply shortage.
The Department of Agriculture (DA) is proposing to amend a law governing the distribution of cash assistance to rice farmers.
If passed, the amended law will now include farm workers who do not own land as recipients of cash assistance sourced from excess tariff collections.
Under Republic Act 11598 or the Cash Assistance for Filipino Farmers Act, only farmers tilling two hectares and below of rice land are eligible to get financial assistance from the government, funded by the tariffs collected in excess of P10 billion from imported rice.
“There’s actually a problem that the DA is also encountering. Based on the law, farm workers are not included (since) the law specifically points to land owners and tenants with two hectares and below,” Iloilo Rep. Janette Garin said during the House plenary deliberations on the DA’s proposed 2025 budget.
“The hands of the DA are actually tied. In fact, the DA is suggesting to probably come up with a new law or amend the law to include farm workers,” added Garin. — Jasper Emmanuel Arcalas, Romina Cabrera, Cecille Suerte Felipe