DA Disputes NEDA Claim, Says Reduced Rice Tariff Helped Lower Prices

The Department of Agriculture (DA) countered the National Economic and Development Authority’s (NEDA) statement, asserting that the reduced tariff on imported rice—cut from 35% to 15% through Executive Order 62—has led to lower rice prices.

DA: Prices Would Be Higher Without Tariff Cut

DA spokesperson Arnel De Mesa said the tariff reduction played a critical role in mitigating rice prices despite challenges such as agricultural damage and a high dollar exchange rate.

“Per our monitoring, there is a decline in the price of rice. Without the tariff reduction, rice prices would undoubtedly be higher,” De Mesa said during a public briefing.

NEDA Calls Impact of Tariff Cut “A Puzzle”

On Tuesday, NEDA Director Nieva Natural stated during a House Murang Pagkain Supercommittee hearing that the tariff cut did not significantly lower rice prices, which remain high due to dominant market players pricing goods above competitive levels.

“This is a puzzle for us… perhaps this deserves a more nuanced analysis,” Natural said.

Customs Data: Landed Cost Lower, Retail Prices Still High

The Bureau of Customs reported that the tariff reduction lowered the landed cost of imported rice from ₱40.26/kg to ₱33.93/kg. However, retail prices remain in the ₱45-₱50/kg range, closely aligning with locally produced rice.

Smuggling Disincentivized

De Mesa highlighted an additional benefit of the tariff cut: a decrease in rice smuggling. “Smugglers lost their incentives because tariffs are lower, and more volume is coming in legally,” he said.

Current Retail Prices

Despite these efforts, rice prices in local markets remain:

• ₱45-₱50 per kilogram.

The debate underscores the complexities of addressing high rice prices amid external pressures and market dynamics.