Rice prices stay high despite reduced tariff

Despite bigger import volumes of rice brought about by reduced tariffs, domestic retail prices for the grain have remained high at P50 to P65 per kilogram, market inspections showed.

Imported rice that landed the country as of September 5 of nearly 2.9 million metrijc tons at reduced tariff of 15 percent (from 35 percent previously) by virtue of Executive Order 62 of President Marcos failed to bring an impact on consumer prices.

Over 2.26 MMT of rice shipments came from Vietnam, the country’s top supplier for the grain, followed by Thailand at 383,230.74 metric tons (MT). Business Mirror quoted data from the Bureau of Plant Industry, which issues import certificates for the staple.

BPI data showed that the Philippines also imported rice from other countries like Pakistan (156,244.48 MT), Myanmar (67,315 MT), and India (21,910.54 MT).

Rice imports started to pick up after shipments in July slowed to 167,403.84 MT following the implementation of Executive Order (EO) 62 which lowered the tariffs to 15 percent and took effect on July 7.

Rice arrivals in August reached 361,724.20 MT. This was lower than the average shipments from the first semester at 390,065.93 MT.

Meanwhile, BPI data showed that BLY Agri Venture Trading led the 154 rice importers with a total volume of 200,946.99 MT. 

Orison Free Enterprise Inc. trailed behind at 166,095.45 MT followed by Macman Rice and Corn Trading at 135,163.30 MT.

BPI approved and issued 6,637 sanitary and phytosanitary import clearances (SPSICs) which covered the importation of 6.83 MMT of rice, Business Mirro added.

An SPSIC would certify that an inbound shipment is safe for human and animal consumption and would not bring in any pests that could be detrimental to the local agriculture sector.

Despite earlier pronouncements by the Department of Agriculture spokesman, Assistant Secretary Arnel de Mesa of an expected reduction in the price of rice, retail prices have shown no indication of such a trend. The Inquirer showed photos of rice in wet markets at from P45 to P65 per kilogram.

The prevailing price of imported well-milled rice in selected Metro Manila markets reached P48.5 per kilogram while regular milled stood at P42 per kg as of September 13, based on the DA’s price monitoring, de Mesa claimed. 

For local well-milled rice, the DA’s monitoring showed that the prevailing price was P50 per kilogram while regular milled reached P48 per kg.

The price of locally produced and imported rice retailed at around P50 a kilo in some public markets in Metro Manila despite lower import duties on the staple, likely due to traders still unloading their stock purchased at the higher tariff rate, the Inquirer noted.

Local regular milled rice was sold from a low of P45 per kilogram to a high of P51 per kg as of Friday, compared to P39 to P45 per kg during the same period last year, based on DA’s price monitoring.

The DA also noted that imported regular milled rice was priced from P42 to P50 per kg. This variety was not available around the same time a year prior.

Imported well-milled rice was more expensive at P45 to P55 per kg, compared to P45 a kilo in the past year.

DA Secretary Francisco Tiu Laurel Jr. said last month that consumers would feel the impact of tariff reduction by October as traders were still disposing of their old stocks which they brought in at higher duties.

“Traders are expected to dispose of their old stocks by about mid-October, which they purchased at higher prices,” he told reporters.

Laurel had also said global rice prices remained high amid India’s ban on rice exports while Indonesia and Malaysia were building up their buffer stocks.

Agriculture Assistant Secretary Genevieve Velicaria-Guevarra said the agency had provided additional farm inputs to boost production and eventually lower the retail prices of other basic commodities by next year.

The country imported 3.8 million metric tons of rice in 2022 and 3.6 million mt in 2023 under the old tariff rates.

In June, President Marcos signed Executive Order No. 62 which slashed duties on imported rice and retained low tariffs on other commodities such as pork and corn until 2028. His order sought to augment supply, manage prices and temper inflationary pressure of commodities. 

The new tariff rates would be applied to imports starting July 5.