Philippines : ‘Rice tariff hike not happening soon’
The Philippine government is unlikely to adjust the current 15% rice tariff soon, as officials seek a balanced solution benefiting both farmers and consumers. DEPDev Undersecretary Rosemarie Edillon said this month’s tariff review will assess the impact of the past year’s low rate. A comprehensive proposal, including reforms to NFA and rice fund use, is expected by November.
MANILA, Philippines — The country’s rice tariff rate may not be adjusted soon as the government mulls over a comprehensive program that will be win-win for both local farmers and consumers, a ranking economic official said.
Department of Economy, Planning and Development (DEPDev) Undersecretary Rosemarie Edillon said there might be no recommendations to adjust the current rice tariff rate in this month’s review.
The prevailing rice tariff of 15 percent, the lowest rate ever for the commodity, is subject to a periodic review every four months since it took effect in July last year.
So far, the government has undertaken a review of the rice tariff twice – one in November last year and another last March – with the third one scheduled this month.
Edillon said government officials are looking at using this month’s mandatory review as an avenue to look at the effects of lower tariff rate after a year of its implementation.
The government, Edillon said, is studying and crafting a solution that would protect local farmers’ prices while ensuring that rice prices remain stable or more affordable to the consuming public without tinkering with the tariff rate.
“So we are looking for that win-win solution,” Edillon said, adding that the study is due to be completed by November, in time for the next scheduled review of the tariff rate.
The final proposal will be submitted to President Marcos for his review and approval by then, Edillon said.
Part of the study the DEPDev is undertaking is how to improve the rice competitiveness enhancement fund implementation and even the restoration of some of the powers of the National Food Authority (NFA) including the direct sale of its stocks to the market.
“We are looking into that. We will see first if we can be more specific about these reforms and if they could work,” Edillon said.
“I think what we need to consider now is how the market has adjusted to the new [rice trade] regime. And then, you know, we’ll see if there are certain changes and powers we can restore,” Edillon added.
The proposed floor price mechanism for palay trading is also being studied by DEPDev, Edillon said.
The Department of Agriculture earlier disclosed that it is in the view that the rice tariffs must revert to the higher 35 percent rate but on a gradual basis to prevent rice market shocks.
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Source : Philstar Global
