THE Philippine Chamber of Commerce and Industry (PCCI) said that the removal of tariffs on rice imports will help the broader population deal with rising prices, though it warned that prolonging the free entry of rice imports will ultimately harm farmers.
“The world price of rice is going up. So, to help our general population who are having a hard time because other food prices are (also rising), we hope that the import duties can be removed,” PCCI President George T. Barcelon told reporters on the sidelines of the 21st International CEO Conference.
However, Mr. Barcelon said that the government should weigh how long the import duties should be removed.
“We don’t want it (to run) too long because this will impact our farmers as the price of palay will be cheaper,” he said.
Reports have emerged of traders offering farmers less for their palay (unmilled rice) because of the expected availability of fresh shipments of cheap rice imports, which domestic rice will need to compete with.
“There has to be a balancing act. But in the meantime, since we›re short of rice, when we import, I hope it doesn’t have taxes for now so that we can lower the cost of rice,” he added.
The Department of Finance proposed last week to temporarily reduce the 35% rice import tariff to 0% or a maximum of 10%.
Mr. Barcelon also said the price controls on rice will be temporary.
“From what I heard from Finance Secretary Benjamin E. Diokno, (the caps) will not last very long… According to some projections, our harvest in the next few months will be good, (which will) mean more supply,” he said.
He added, however, that consumers must not aggravate the situation by buying more than they need.
“We have enough rice (for) many months … The public should just buy enough for their needs. They should not be part of the problem,” he said.
In a statement issued on Tuesday, the Department of Trade and Industry (DTI) said it was able to sell a total of 1,371 sacks of well-milled rice through its Rice on Wheels for Retailers program.
“The program started on Sept. 8 and is set to run as long as demand is present in the market,” the DTI said.
“The rice millers and retailers who are working with us initially committed 30,000 sacks, which will be sold in the coming weeks, as previously mentioned, (while) demand is present,” it added.
The program, which is carried out in collaboration with Bulacan rice millers and traders, is part of the DTI’s efforts to implement Executive Order (EO) No. 39, which set price ceilings for regular-milled and well-milled rice at P41 and P45, respectively, starting Sept. 5.
“For now, the program serves as a mitigating measure for those affected by the implementation of EO 39. We will adjust the timeline of the program depending on the result of our monitoring in the coming weeks,” the DTI said. — Justine Irish D. Tabile
