The price of rice is expected to begin decreasing by October, driven by the reduction in import tariffs, Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. announced on Wednesday.
However, Tiu Laurel mentioned that the full effect of the price drop due to tariff cuts might not be fully realized until January 2025, as rice traders have increased imports to prepare for a potential supply shortage caused by El Niño.
"Since food demand typically rises in December, we expect a more significant drop in rice prices by January," Tiu Laurel stated.
In June, President Ferdinand Marcos Jr. signed Executive Order (EO) No. 62, reducing tariffs on rice and other agricultural products from 35 percent to 15 percent.
In the EO, Marcos stated that the revised tariff schedule is intended to boost supply, control prices, and mitigate inflationary pressures on various goods, aligning with the country's national interests and the goal of protecting the purchasing power of Filipinos.
Agricultural groups have filed a petition with the Supreme Court seeking to invalidate the EO, arguing that it was rushed without adequate consultation or investigation. The petitioners expressed concern that reducing tariffs could result in a surge of cheaper imported goods, negatively impacting the sales and livelihoods of local producers and farmers.
Meanwhile, the DA secretary noted that rice imports saw a substantial rise only in August, reaching 385,000 metric tons (MT). According to a report by the US Department of Agriculture, rice imports for 2024 are projected to total 4.6 MT, a reduction of 100,000 MT, due to "slowing purchases" from Vietnam, the country's primary source of imported rice.
The department also noted that "[g]lobal rice prices remain elevated due to strong demand from Malaysia and Indonesia, further aggravated by efforts from Thailand and Vietnam to drive prices up."
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