Imported Rice Prices Expected to Drop with Proposed Tariff Slash – DA Official

Consumers could see a notable decrease in the price of imported rice if a proposed tariff reduction is approved, according to a Department of Agriculture (DA) official. During the Kapihan sa Manila Hotel forum, DA spokesperson Assistant Secretary Arnel De Mesa indicated that initial estimates suggest a potential price drop of P4 to P5 per kilo for imported rice.

Currently, imported well-milled rice is priced between P52 and P54 per kilo, as per the latest DA price monitoring data. Finance Secretary Ralph Recto has advocated for reducing the tariffs on imported rice, which are presently set at 40% for in-quota imports and 50% for out-quota imports.

“If tariffs are reduced to 17.5%, we expect a significant price reduction. Our initial estimate is a reduction of around four to five pesos per kilo,” De Mesa explained. This would allow cheaper rice imports, including 25% broken rice, potentially pressuring the private sector to lower their prices as well.

However, this tariff reduction could lead to substantial revenue losses for the government, estimated at billions of pesos. Finance Undersecretary Domini Velasquez stated that the government is prepared to accept these losses if it means benefiting consumers. “The potential loss of less than P10 billion is manageable if it results in a four to five peso decrease in rice prices,” she said.

The proposal will undergo consultation with various stakeholders and review by the Tariff Commission. If approved, consumers might start seeing the price reductions by September, during the lean season.

De Mesa added, “If we see prices around P40 to P45 per kilo in the market, other sellers will likely follow suit.”