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The broad agriculture sector coalition Sinag has urged the government to reinstate the tariffs on imported rice as lower duties failed to cut the price of the food staple. 

In a letter to the President, Sinag Chairman Rosendo So called on the government to revert the tariffs on rice to its original rate of 35 percent for Asean countries and 50 percent for non-Asean countries by repealing Executive Order (EO) 62. 

EO 62, which slashed rice tariffs to 15 percent from 35 percent until 2028, took effect in July 2024. 

The group said the tariff reduction on imported rice under EO 62 “unfortunately failed to lower rice prices,” which was the prime objective of the order. 

So also noted that the tariff reduction from July 2024 to December 2024 led to a loss of P15 billion in foregone revenues originally earmarked to support rice farmers under the amended Rice Tariffication Law (RTL).

The amended RTL extended and increased the Rice Competitiveness Enhancement Fund (RCEF) to P30 billion until 2031.

He noted that allocating P15 billion to 1.5 million hectares of rice plantations could lower the production cost of palay by P2.90 per kilo, equivalent to a reduction of P5 per kilo of local rice. 

“The National Rice Program budget, as approved by Congress, was cut by P10 billion. Additionally, a loss of P27 billion in foregone revenues is expected under EO 62 this year.”

Meanwhile, the group said global rice prices have already declined. It dropped by $146 per metric ton (MT) to $422 per MT on January 18 from $568 per MT last July 10, 2024.

“This translates to a decrease of P8.54 per kilo in the global rice market, which exceeds our target reduction of P6 to P7 per kilo through EO 62.”

So noted that the local agriculture sector expressed support for the government’s efforts to reduce retail prices of the staple food, such as the declaration of the food security emergency for rice and the Rice-for-All program, among others. 

“These programs are testaments that we can reduce rice prices without reducing tariffs.”

The Department of Agriculture (DA) earlier declared a food security emergency on rice due to the “extraordinary spike” in the price of the country’s food staple despite the easing of global rice quotations and lower rice tariffs.

Source : businessmirror