Imports unlikely to cut rice prices
Former Party-list Rep. Argel Joseph T. Cabatbat criticized President Ferdinand R. Marcos, Jr.’s plan to lower rice prices through imports, citing that private traders control retail prices and are likely to sell imported rice at higher prices despite lower acquisition costs. He highlighted concerns about the lack of government price regulation and noted that global rice prices have already risen in response to the tariff cuts under Executive Order No. 62. Farmer’s groups, including Cabatbat, have sought Supreme Court intervention to halt the order, arguing it threatens local farmers’ livelihoods.
PRESIDENT Ferdinand R. Marcos, Jr.’s promise to lower rice prices through imports is unlikely to materialize, with private traders controlling retail prices, according to a former congressman.
“Private importers have control over the retail price, so even if they bought imported rice at a lower price, they will sell imported rice at a higher price,” former Party-list Rep. Argel Joseph T. Cabatbat, who represented the farm sector when he was still a congressman, told BusinessWorld in a text message.
“Due to the absence of government control over the prices of imported rice, we need to beg for mercy from importers,” he said. “Add to that, Vietnam and other countries have already raised the prices of rice in the world market after hearing about Executive Order No. 62,” he added.
Mr. Marcos has issued an order cutting rice tariffs to 15% from 35% amid spiraling prices.
Last week, Mr. Cabatbat and other farmer’s groups asked the Supreme Court to stop the executive order, which they said would bleed local farmers.
IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa said the extended rice tariff cuts remove the protection enjoyed by farmers.
“Removing the protection will make market conditions more difficult for marginal rice producers,” he said in a Viber message. “If they opt out, then domestic palay output will be compromised.” — Chloe Mari A. Hufana
Source Link : https://www.bworldonline.com/the-nation/2024/07/09/607056/imports-unlikely-to-cut-rice-prices/
Recommended for you
