Diokno: Tariff cuts on rice imports discussed with eye on ‘greatest good’

The Department of Finance is discussing with other agencies the proposed cuts on tariffs on rice imports while looking out for "the greatest good for the greatest number," Finance Secretary Benjamin Diokno said on Monday.

Diokno said the proposal to lower tariffs is currently being looked into as part of a “comprehensive strategy” to cut down rice prices and address a potential shortage due to the impact of the ongoing El Niño phenomenon.

“As discussions are underway, the Department of Finance maintains its support for an appropriate policy response that promotes the greatest good for the greatest number of Filipinos,” Diokno said in a statement.

“Rest assured that the DOF, in coordination with other relevant government agencies and stakeholders, shall pursue programs and support measures to balance the interests of domestic rice farmers while keeping rice affordable for consumers — especially the poorest households,” he added.

Just last week President Ferdinand “Bongbong” Marcos Jr. in Singapore said the country could not continue to depend on importation which had become “the easy way out.”

Latest data available from the Department of Agriculture (DA) show that price of local commercial rice in Metro Manila markets ranged from P40.00 to P66.00 per kilogram, and imported commercial rice from P45.00 to P60.00 per kilogram depending on the variety as of September 15, 2023.

The Bureau of Plant Industry (BPI) over the weekend said the country’s rice supply is expected to grow by 1.4 million metric tons (MT) this month, as a number of farmers have started to harvest.

Diokno, in a press chat earlier this month, said the DOF was proposing to reduce the 35% rice import tariff rates for both ASEAN and most-favored nations temporarily to 0% or a maximum of 10% to arrest the surge in rice prices.

Farmers groups have since called for his resignation, along with that of National Economic Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, as they said the removal of tariffs would be a “death sentence” for rice farmers and stakeholders.

Diokno, also earlier admitted that the economic team was caught by surprise when Marcos issued Executive Order 39 which mandates a price cap of P41 per kilogram for regular-milled rice, and P45 per kilogram for well-milled rice effective September 5, 2023 amid the rising prices.

He later clarified, however, that the economic team supported the price cap as an “essential” stop-gap measure given the continuous increase in rice prices. The NEDA earlier released a similar statement. —NB, GMA Integrated News