Imported rice prices could go down by 4-5 pesos if tariff reduction OK’d —DA exec

Consumers may expect a significant price reduction on imported rice should the proposed tariff reduction push through, a Department of Agriculture official said Wednesday.

At the Kapihan sa Manila Hotel forum, DA spokesperson Assistant Secretary Arnel De Mesa said initial estimates show there could be a P4 to P5 per kilo reduction in the price of imported rice should the tariff reduction push through.

Imported well-milled rice is sold at P52 to P54 per kilo, according to the DA's latest price monitoring.

Finance Secretary Ralph Recto has pushed for the lowering of tariffs on imported rice. Currently, the tariff on imported rice stands at 40% for in-quota and 50% for out-quota.

"Kung ibababa pa to 17.5%, malaki ang magiging reduction. Initial estimate namin about four to five pesos' reduction. Hopefully kung maipasa ang [tariff reduction], ang tinitingnan kasi namin doon makapagpasok ng bigas na mas mura, yun 25 percent broken so that the private sector ma-pressure din sila na magpasok ng mas murang bigas."

If the tariff reduction is approved, it could result in forgone revenues for the government amounting to billions of pesos. However, Finance Undersecretary Domini Velasquez said the government is willing to take the hit if it would ultimately benefit the consuming public.

"Actually, OK naman i-offset iyon, para lang lahat actually makinabang doon sa lower tariff," she said. "So if wine-weigh natin 'yung mga less than P10 billion na mawawala, hindi naman 'yun masyado nagma-matter if mapababa nga talaga natin 'yun prices ng mga four to five pesos."

Velasquez said this proposal will have to undergo consultation among various stakeholders and will go through the Tariff Commission.

If approved, effects would likely be felt in September during the lean season.

"Pag may nakita sa palengke na 40 [peso] level, say P45 na bigas, eventually yung merkado susunod," De Mesa said. — BM, GMA Integrated News