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Trust in e-commerce platform, merchants key to purchasing decisions of consumers

STOCK PHOTO | Image by andrespradagarcia from Pixabay

The volume of online fraud contributes to the lack of trust in the e-commerce system in the Philippines, Trade Secretary Alfredo E. Pascual stated. 

“Given the volume of fraud online, it doesn’t come as a surprise that consumers base their purchasing decisions on how much they trust the e-commerce system in general and the online merchant in particular,” he claimed on Filipinos’ relationship with digital trade platforms. 

According to Statista, Gen Zs and Millenials are the most common online shoppers in the country.  

“Those aged between 25 to 34 years old accounted for more than 50 percent of online shopping and are members of the society earning highest among other working groups,” Statista elaborated. 

In an interview during Shopee’s event last May 28, the company’s Regional Marketing Lead Huiyan Pan shared that “Gen Z is being digital native. I think they have lived and breathed this right from the get-go…. So they are the most discerning, they know what they want. And they, I guess, demand for the best experience.”  

The online shopping platform showcased its new feature ‘COD Unbox: Return on the Spot’ that would allow shoppers to check their package or parcel before receiving the item. 

“If you change your mind on something, you can very easily file for easy return. So that gives you peace of mind when you buy. For example, if you are getting COD and you’re missing a parcel, you can just check it before…you accept that. That gives you…peace of mind on Shopee. So these are the structural journeys that we want to create,” she added. 

 

E-Commerce Roadmap 

In the Department of Trade and Industry (DTI) discussion on the 2024 to 2028 E-Commerce Philippines roadmap last April 8, digital trade platforms were encouraged to strengthen the relationship of its users to promote inclusivity and innovation towards youth, women, persons with disabilities, and senior citizens. 

“Our goal is to strengthen the trust between buyers and sellers. By achieving this, we can foster a more complex economic landscape, enhancing connections and establishing stronger relationships,” Mr. Pascual said. 

He added that the e-commerce platforms, both from the government and private sectors, should represent a shift from “easy commerce” to “exciting commerce. 

Republic Act No. 11967, or the Internet Transactions Act (ITA) of 2023 was also enacted to recognize and value the importance of e-commerce platforms in the digital economy to improve confidence in online shopping. 

“I am confident that this law and the IRR will positively revolutionize e-commerce in the Philippines. By fostering trust in online transactions, we are creating more opportunities for high-quality and better-paying jobs,” the Trade Secretary mentioned in his speech last May 22.   

ITA aims to guarantee: 

  • The protection of consumer rights and data privacy 
  • Encourage innovation 
  • Promote competition 
  • Secure internet transactions  
  • Uphold intellectual property rights 
  • Ensure product standards and safety compliance 
  • Observe environmental sustainability.

– Almira Louise S. Martinez

Global shift to renewables slowed in 2023, policy group says

EVGENIY ALYOSHIN-UNSPLASH

SINGAPORE – The global shift to renewables in major energy-consuming sectors slowed in 2023, hindered by regulatory gaps, political pressures and a failure to set clear targets, a policy group said on Wednesday.

The COVID-19 pandemic and the Ukraine war helped ambitions to shift to renewables amid growing concerns about energy security, but governments have failed to build on the momentum, an annual assessment by Paris-based REN21 group said.

By the end of last year, only 13 countries – including the United States, India and China – had implemented policies on renewables that cover buildings, industry, transport and agriculture, with only 12.7% of the energy the sectors consume coming from clean sources, REN21 said.

Many countries have even backtracked on their ambitions: of 69 countries with renewable energy targets for end-users, only 17 extended them beyond 2024, said REN21, which brings together governments, research institutions and NGOs to promote the switch to clean energy.

“Governments have basically stepped back from their ambitions, and energy-consuming sectors don’t have the economic incentives any more,” REN21’s Executive Director Rana Adib said.

The report warned that countries were slow on reforms and the trillions of dollars of subsidies granted to fossil fuels, particularly in industry and agriculture, still hold the energy transition back.

Falling fossil fuel prices in 2023 also shaped policymaking, and debate about the costs of switching to cleaner energy have intensified, especially as many countries head towards elections, Ms. Adib said.

Decarbonizing heavy industry remains a major challenge, with “hard to abate” sectors such as cement and steel arguing that renewables cannot generate the heat required to fire their kilns and blast furnaces.

But while the transition of industry could prove more challenging than transportation, solutions do exist, including the use of electric arc furnaces to make steel, Ms. Adib said.

“‘Hard to abate’ already sends the message that these are sectors that are almost impossible to decarbonize, which is not true,” she said.

China lifts ban on five Australian beef exporters

STOCK PHOTO | Image by 정훈 정 from Pixabay

SYDNEY – China has lifted bans on imports from five major Australian beef processing facilities, the Australian government said on Thursday, in the latest sign of improving relations between the two nations.

Beijing has now removed restrictions from eight abattoirs but two remain subject to import bans, the government said.

China imposed the bans between 2020 and 2022, around the same time it barred imports of a swathe of commodities including coal, timber and wine from Australia after Canberra called for an independent investigation into the origin of COVID-19.

The bans applied to certain abattoirs but did not affect others, which meant Australia was still able to ship beef to China.

“It was difficult for those particular abattoirs but we still saw beef flowing,” said Matt Dalgleish, an analyst at agricultural consultants Episode 3.

He said the removal of the restrictions should still boost Australian shipments to China, which have already risen to their highest level since 2020 as a shrinking cattle herd in the United States, Australia’s main competitor, reduces U.S. exports.

Lower US supply may have been one reason for China’s action, Dalgleish said.

China was Australia’s second-biggest beef export market last year, receiving 240,000 tons worth around $1.6 billion, Australian trade data show.

Beijing has lifted most of the barriers it imposed on Australian goods since a change of government in Canberra two years ago. A ban on imports of Australian lobsters remains in place.

“We continue to press China to remove the remaining trade impediments, including for Australia’s rock lobster industry,” Australian foreign minister Penny Wong, trade minister Don Farrell and agriculture minister Murray Watt said in a joint statement.

They said China’s trade impediments at their height impacted Australian exports worth A$20.6 billion ($13.6 billion).

The reasons China gave for suspending the Australian beef processors were issues over labelling or contamination or cases of COVID-19 among their workers. – Reuters

Fourteen Hong Kong democrats found guilty in landmark subversion trial

FREEPIK

HONG KONG – Fourteen Hong Kong pro-democracy activists were found guilty and two were acquitted on Thursday in a landmark subversion trial that critics say could deal another blow to the city’s rule of law and its reputation as a global financial hub.

The verdicts in Hong Kong’s biggest trial against the democratic opposition come more than three years after police arrested 47 democrats in mass dawn raids at homes across the city. They were charged with conspiracy to commit subversion under a China-imposed national security law.

Sentencing will come at a later date for those found guilty, with prison terms ranging from three years to life for this national security offence. Thirty-one defendants pleaded guilty, and four of them have become prosecution witnesses.

The US and some other countries have criticized the trial as politically motivated, calling for the accused to be immediately released.

Security was tight around the High Court, where diplomats from the US, Britain and Europe have attended proceedings. Scores of police officers and vehicles patrolled the area. Some supporters queued overnight to secure a spot.

“I came because it’s a critical stage and a historical moment” for Hong Kong, said a man who gave only his surname, Chiu, 35, who began waiting at midnight. The defendants “all stood up for themselves and for Hong Kong people, hoping to make a change”.

The defendants are accused of a “vicious plot” to paralyze government and force the city’s leader to resign through an unofficial pre-selection ballot in a July 2020 citywide election. The democrats maintain it was an unofficial attempt to select the strongest candidates in a bid to win a historic majority in Hong Kong’s legislature.

Mass pro-democracy protests erupted in Hong Kong in 2019 against Beijing’s plans for security legislation that democrats argued infringed on freedoms guaranteed when Hong Kong was handed back to China by the British in 1997.

Most of the accused have been detained since Feb. 28, 2021, and were subjected to marathon bail hearings. – Reuters

Taiwan says China is ‘nibbling away’ at its space, trying to create a new normal

CHESS PIECES are seen in front of displayed China and Taiwan’s flags in this illustration taken Jan. 25, 2022. — REUTERS

TAIPEI – China is trying to “nibble away” at Taiwan’s space and create a new normal with its military drills and other moves to exert pressure, which is a matter for global concern, Taiwanese Foreign Minister Lin Chia-lung said on Thursday.

China, which views democratically-governed Taiwan as its own territory, staged two days of war games around the island last week following shortly after the inauguration of new Taiwan President Lai Ching-te, who Beijing calls a “separatist”.

While those drills have formally ended, China’s military activities have not, with Taiwan reporting that on Wednesday Chinese warplanes and warships carried out a “joint combat readiness patrol”.

“The Chinese communists’ pressure on Taiwan is all encompassing, especially diplomatically,” Mr. Lin told reporters at parliament before taking lawmaker questions.

Taiwan faces a huge amount of obstruction in its attempts to take part in international organizations, like a major World Health Organization meeting this week which it has been unable to take part in, the minister added.

Chinese pressure keeps Taiwan out of most international bodies. China says Taiwan is one of its provinces with no right to the trappings of a state, a position the government in Taipei strongly rejects.

Mr. Lin pointed to other things China has been doing, like unilaterally opening new air routes close to Taiwan-controlled islands next to the Chinese coast, and sending coast guard ships to Taiwan’s east coast during the exercises last week.

“The Chinese communists are continuing to change the status quo,” he said. “They are creating a new normal, pressing on at every stage, trying to nibble away and annex (us).”

China’s Taiwan Affairs Office, at its routine news conference on Wednesday, reiterated its list of complaints about Lai being a dangerous supporter of Taiwan’s formal independence, and threatened continued Chinese military activity.

Mr. Lai has repeatedly offered talks with China but been rebuffed, and says on Taiwan’s people can decide their future.

China says Taiwan is a purely internal matter.

Mr. Lin said stability was a matter for everyone.

“The cross-strait issue is not only about the strait; it’s a regional, or even global matter,” he added.

The government in Taipei says Taiwan is already an independent country, the Republic of China. The Republican government fled to Taiwan in 1949 after losing a civil war with Mao Zedong’s Communists who set up the People’s Republic of China. – Reuters

Mushrooming opportunities: How TikTok Shop transformed Casi’s Mushroom chicharon business

Casi’s Mushroom Chicharon products

As the digital landscape continues to reshape the business landscape, small and medium enterprises (SMEs) are finding new avenues for growth and expansion. Among these success stories stands Casi’s Mushroom Chicharon, a local business specializing in snacks crafted from organic white oyster mushrooms.

With the rise of e-commerce platforms like TikTok Shop, this local enterprise has seized the opportunity to enhance its market reach and visibility, positioning itself for sustainable growth in the digital era.

Thriving in Adversity

Casi’s Mushroom Chicharon was founded by Josemartin Casillano during a challenging time, following a significant medical expense. Starting as a side project, Casillano’s commitment and hard work led to the rapid growth of his business. Initially employing a small team, the focus was on efficient mushroom cultivation, production, and sales. The nutritional benefits of oyster mushrooms, including being a source of protein, fiber, and antioxidants, attracted a health-conscious customer base.

Leveraging TikTok for Business Growth

Recognizing the potential of social media, Casillano launched a TikTok Shop to increase the visibility of his products. Dedicated to empowering local micro, small, and medium enterprises (MSMEs), TikTok Shop assists businesses in enhancing their visibility and creating growth opportunities in the digital landscape. Casi’s Mushroom Chicharon stands out as one of the success stories from this platform.

“Selling Casi’s Mushroom Chicharon has become easier because of TikTok Shop. Customers can now see our product. It doesn’t require a large capital, and you don’t need much technical knowledge to join TikTok Shop,” said Casillano.

Casi’s Mushroom Chicharon experienced a significant transformation after partnering with TikTok Shop. Leveraging the platform’s dynamic features, including content creation tools and shoppable content options, the business saw an unprecedented increase in visibility and consumer engagement. Consequently, the growing business boosted its sales by 50-60% through TikTok Shop.

Empowering Filipinos with income opportunities

The rise in Casi’s Mushroom Chicharon sales created new opportunities for many individuals. Starting with an initial team of three, the company has expanded to employ 19 people and now relies on 35 mushroom growers to meet the growing demand for its product.

“TikTok Shop helps small business owners like me through their programs like Buy Local, Shop Local. By providing vouchers and discounts, it further boosts the sales of small business owners and also helps local employees and farmers,” Casillano shared.

Josemartin Casillano, founder of Casi’s Mushroom Chicharon

Launched in November 2023, TikTok Shop’s “Buy Local, Shop Local” campaign aims to enhance the visibility of local vendors and promote community pride and economic solidarity among consumers.

Reflecting on his business journey, Casillano acknowledges the collaborative efforts with TikTok Shop, citing its alignment with his goals to promote business and support local growers. Together, they contribute to positive change, fostering growth in agriculture and socio-economic empowerment.

Looking ahead, Casillano sees potential in continuing the partnership with TikTok Shop, recognizing its role in fostering growth for Filipino enterprises.

 

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Tech brain drain fuels Philippines’ cybersecurity skills gap

STOCK IMAGE | Image by Dee from Pixabay

MANILA (Thomson Reuters Foundation) – Nurses, engineers, doctors – now cybersecurity experts. As the Philippines counts the cost of brain drain, a surge in malicious cyber activity has highlighted the country’s digital security skills gap.

US cybersecurity firm Resecurity reported a 325% jump in hacking and other digital intrusions targeting the Philippines during the first quarter of 2024 amid rising tensions with China, largely over disputed territory in the South China Sea.

That prompted President Ferdinand Marcos Jr to launch a cybersecurity strategy to beef up the nation’s cyber defenses to combat attacks and digital crimes. Its military said last year it would create a cyber command.

But industry analysts say such plans could struggle due to big shortages of skilled “cyber warriors” in the Philippines, which is estimated to need tens of thousands of digital security professionals.

Whether targeting ordinary people, journalists or activists, online threats from doxxing to domain blocking and digital surveillance are rising in the Philippines and other Southeast Asian nations, highlighting a lack of resources and expertise to fight them, experts say.

“What the government doesn’t recognize is we’re having a brain drain not only in the healthcare sector but also in cybersecurity,” said JM Cipriano, a cybersecurity professional who has worked for a multinational company in the Philippines.

Despite a higher salary than other careers in IT, he said Filipino cybersecurity experts are being lured abroad by companies offering more money, better working conditions and relocation packages.

Practitioners in the Philippines can expect a monthly salary of between 40,000 and 90,000 pesos ($690-$1,560) – up to six-times the minimum wage, Mr. Cipriano told the Thomson Reuters Foundation.

But he said the Philippines was still losing cybersecurity talent to US companies with offshore offices in Manila, or companies in Singapore, the United Kingdom and the Middle East that offer more competitive salaries.

Globally, the shortage of cybersecurity professionals reached a record last year, with some 4 million vacancies around the world, according to cybersecurity nonprofit ISC2, with the gap growing fastest in developing countries.

 

‘ENORMOUSLY EXPENSIVE’

While part of the problem is migration from the Philippines, a major global exporter of labor, domestic shortages are also linked to inadequate training opportunities and policies to boost recruitment at a national level, experts say.

The need for cybersecurity professionals “is not well communicated to the different parts of the country”, said Angel Redoble, founder of the Philippine Institute of Cyber Security Professionals, a nonprofit pushing for a secure Philippine cyberspace.

Filipinos can study cybersecurity in only a handful of private universities with high tuition fees, and are often encouraged to pursue certifications for specific training and courses for 15,000 to 20,000 pesos.

Such barriers led 27-year-old former teacher Jaevik Madayag to abandon his plans of working in the field.

“Cybersecurity certifications are enormously expensive for Filipinos and having a certification doesn’t guarantee that you could enter that workforce,” he said.

With cybersecurity threats and data breaches on the rise, the government is taking steps to boost recruitment.

In January, it launched a new set of cybersecurity standards that schools and training centers can use for their program curriculum.

Under the new national cybersecurity strategy, there are plans for more specialist degrees and programs to upskill or retrain existing professionals.

Fostering accessible career progress will be vital, said Mr. Madayag, who now does IT support for a leading global tech company.

“Cybersecurity is a niche job in the IT industry,” he said. “You have to go through many paths and prerequisites and cannot jump ahead to practice.” – Reuters

RFM Corporation to conduct 2024 Annual Meeting of the Stockholders virtually on June 26

 

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Cocolife announces Annual Stockholders’ Meeting via remote communication on June 26

 

 

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New vehicle sales up 22% in April

Vehicles are seen along South Luzon Expressway in this file photo. — PHILIPPINE STAR/RUSSELL PALMA

By Adrian H. Halili, Reporter 

NEW VEHICLE SALES jumped by an annual 22% in April, amid steady consumer demand, an industry report showed.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed new automotive sales rose to 37,314 units in April from 30,643 units in the same month last year.

Month on month, vehicle sales dipped by 0.4% from the 37,474 units sold in March.

Auto Sales (April 2024)CAMPI President Rommel R. Gutierrez said the industry posted “strong” year-to-date sales despite the month-on-month drop.

“On the demand side, positive consumer and business confidence plus stability in automotive finance boosted sales,” he said in a statement.

Commercial vehicles accounted for nearly three-fourths of sales in April. Sales went up by 16.9% to 27,272 units in April from 23,326 units a year ago. Month on month, sales fell by 0.4%.

Broken down, light commercial vehicle sales went up by 10.7% year on year to 19,561 units, while sales of Asian utility vehicles rose by 47.5% to 6,816 units.

Sales of light-duty trucks and buses dropped by 29.7% to 491 units, while heavy trucks plunged by 44.9% to 49 units. Medium truck sales rose by 40.9% to 355 units in April.

Meanwhile, passenger car sales surged by 37.6% to 10,069 units in April from 7,317 units sold in the same month in 2023. Month on month, sales slipped by 0.57%.

For the first four months of 2024, new vehicle sales increased by 14.8% to 146,920 units from 127,927 units a year ago.

Passenger car sales jumped by 19.4% to 38,280 units, while commercial vehicle sales grew by 13.4% to 108,667 units.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said higher car sales could be attributed to improved spending power of Filipino consumers despite elevated inflation and high interest rates.

The Bangko Sentral ng Pilipinas (BSP) has kept its key interest rate at a 17-year high of 6.5% since October 2023.

“Lack of mass transport system also helped sustain the double-digit growth in vehicle sales. As well as more sales of electric and hybrid vehicles, modernization of transport fleet, new models, easier ownership terms such as low downpayments,” Mr. Ricafort said in a Viber message.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that consumers are expecting interest rates to be cut soon “so they could be availing of more flexible financing terms.”

CAMPI’s Mr. Gutierrez said the industry expects higher sales of electric vehicles (EVs) this year as the government reduced tariffs on imported hybrid EVs and plug-in hybrid EVs to zero.

The National Economic and Development Authority earlier this month expanded the zero tariff policy for EVs to also include hybrid EVs, plug-in hybrid EVs, e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles and quadricycles. Last year, EVs made up 2.5% of total industry sales.

Mr. Gutierrez also said new vehicles are already compatible with the higher biofuel blend, which is set to be implemented by October.

The Department of Energy earlier directed oil companies to increase the coco biodiesel blend to 3% starting October.

Meanwhile, Toyota Motor Philippines Corp. remained the market leader, with sales of 67,580 units in the first four months of the year, up 13.9% from 59,328 units a year ago.

Mitsubishi Motors Philippines Corp. ranked second with a market share of 18.94%, after it posted a 19% increase in sales to 27,828 units.

In third spot was Ford Motor Company Phils. Inc., whose sales went up by 20.1% to 9,688 units.

Rounding out the top five were Nissan Philippines, Inc., which saw a 10.2% increase in sales to 9,375 units, while Suzuki Phils., Inc. posted a 12.5% rise in sales to 6,117 units.

CAMPI set a sales target of 468,300 units for 2024. Last year, the industry sold 429,807 units.

5.9% GDP growth seen in Q2

The Quezon City Hall building is lit with the Philippine flag, May 28, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINE ECONOMY may grow faster in the second quarter due to improved state spending, putting it on track to hit the low end of the government’s full-year target, according to First Metro Investment Corp. (FMIC) and the University of Asia and the Pacific (UA&P).

“We expect Q2 GDP (gross domestic product) to speed up to 5.9% and end the full year at 6% with a mild upward bias,” FMIC and UA&P said in The Market Call report released on Wednesday.

If realized, the second-quarter GDP growth of 5.9% would be faster than 5.7% in the first quarter and the 4.3% print a year ago.

The Philippine Statistics Authority will release second-quarter GDP data on Aug. 8.

FMIC and UA&P’s full-year forecast of 6% falls at the low end of the government’s 6-7% GDP growth target.

“We retain our nuanced optimism with respect to an acceleration that should start in (the second) quarter continuing for the rest of 2024,” they said.

“We base this on hefty employment levels, fiscal space that should enable the government to speed up spending, especially infrastructures.”

After weaker-than-expected first-quarter GDP growth, National Economic and Development Authority Secretary Arsenio M. Balisacan earlier said that GDP growth must average 6.1% in the next three quarters to meet the government’s target range.

The FMIC and UA&P said they do not expect to see a repeat of the “disappointing” first-quarter growth.

“We think that GDP growth will accelerate for the rest of the year boosted by robust employment gains, stronger manufacturing and output gains, and improved agriculture with El Niño heat over,” they said.

FMIC and UA&P said a potential 25-basis-point (bp) rate cut by the Bangko Sentral ng Pilipinas (BSP) in the third quarter would also boost domestic demand.

The Monetary Board earlier this month kept its benchmark interest rate at a 17-year high 6.5% for the fifth straight meeting. However, the BSP signaled a possible rate cut by August.

Headline inflation would also likely quicken to the upper end of the central bank’s 2-4% target in July before slightly cooling to 3% in August amid easing rice and crude oil prices, FMIC and UA&P said.

“Hefty” employment levels and faster government spending, particularly on infrastructure, would also help drive GDP growth, FMIC and UA&P said.

However, the peso may stay under pressure in the July-to-September period amid high trade deficits and a stronger US dollar, they said.

The local unit closed at P58.42 a dollar on Wednesday, weakening by 45 centavos from its P57.97 finish on Tuesday, Bankers Association of the Philippines data showed.

This was the peso’s worst finish in over 18 months or since its P58.58-per-dollar close on Nov. 7, 2022.

“While April has not favored bond and equity risk taking, the recovery in May is likely due to the expected cut in BSP policy rates in August and to quarter one earnings much above expectations portends a more promising second half,” FMIC and UA&P said. — Beatriz Marie D. Cruz

DoF estimates P10B in foregone revenues from lower rice tariffs

A worker unloads a sack of rice at a warehouse in Tondo, Manila, May 7, 2024. — PHILIPPINE STAR/JOHN RYAN BALDEMOR

THE DEPARTMENT of Finance (DoF) proposal to further lower the tariffs on rice imports is estimated to bring down prices by as much as P5 per kilo, but also result in around P10 billion in foregone revenues.

“Our current estimate is less than P10 billion in (foregone) revenues if the (tariff cut) is implemented,” Finance Undersecretary and Chief Economist Domini S. Velasquez said in mixed English and Filipino at a forum on Wednesday.

Finance Secretary Ralph G. Recto earlier proposed to lower tariffs on rice imports to 17.5%, from the current 35%, to bring down prices of the staple.

Agriculture Assistant Secretary and Spokesperson Arnel V. de Mesa said the proposed tariff reduction could help bring down the price of imported rice by as much as P5 per kilo.

“If we lower the (tariff) to 17.5%, the reduction (in prices) will be big. Our initial estimates, we see about P4 to P5 reduction,” he said.

As of May 28, the average retail price of imported well-milled rice rose to P52-P54 per kilo from P40-P46 a year ago. Imported regular milled rice ranged from P49-P51 to P37-P38.

Meanwhile, local well-milled rice ranged from P48-P55 per kilo, higher than the P39-P46 band in the year-ago period. Regular milled rice averaged P45-P52 from P34-P42 previously.

Ms. Velasquez said the government generates some P30 billion in tariff revenues from the implementation of the Rice Tariffication Law (RTL).

However, she said the potential drop in revenues is not an issue if the tariff reduction will help bring down prices of rice.

“On the DoF’s part, we’re willing to forego that tariff loss just to make sure inflation is down,” she added.

Ms. Velasquez said that the discussions on the tariff proposal are still in the early stages.

“I think (the proposal) is 15% to 20%. Before, when rice prices increased, there were even requests of 10%,” she said.

In December, the government approved the extension of the reduced most favored nation tariff rates on several commodities, including rice, until Dec. 31, 2024. Tariff rates for imports of rice were kept at 35% for shipments within the minimum access volume quota and for those exceeding the quota.

As of April, the government has collected P16 billion from rice tariffs.

The Philippines imported 1.89 million metric tons (MT) of rice as of early May, data from the Bureau of Plant Industry showed.

Ms. Velasquez said global rice prices are easing but there are still pressures due to the lean season.

“We saw that prices in the market this May are already easing from April… We hope that lowering the tariff will help, especially during the lean season.”

Mr. Recto earlier said the retail price of rice could drop by as much as 20% by September. — Luisa Maria Jacinta C. Jocson

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