Lower Rice Tariffs May ‘Take a While’ to Impact Prices – NEDA

Filipinos might need to wait a bit longer to feel the impact of the recently implemented executive order lowering tariffs on rice imports, according to the National Economic and Development Authority (NEDA).

NEDA Secretary Arsenio Balisacan, in a chance interview with reporters, mentioned that the effects of Executive Order No. 62, which reduces the tariff rate for imported rice from 35% to 15% until 2028, might not be immediately felt. “I think that will still probably take a while […] We are monitoring the situation,” Balisacan said.

The reduction in rice tariffs is part of the government’s efforts to lower rice prices to P29 per kilogram, specifically targeting affordability for poorer households. This policy decision was made by the NEDA Board, chaired by the President, with Balisacan serving as vice chair.

Periodic Review and Monitoring

The Department of Agriculture noted that EO 62 mandates a periodic review of the tariff rates every four months, with the first review scheduled for November. Balisacan mentioned that NEDA is currently preparing the methodologies for this review to provide a timely and accurate report to the President.

“We are already preparing the methodologies, how to undertake the review, para mas up to date ‘yung report namin to the President (so we will present an up-to-date report to the President),” Balisacan added.

While the tariff reduction aims to make rice more affordable, its immediate effect on retail prices remains uncertain as various factors, including market response and supply chain adjustments, come into play.