SINAG Questions Persistent High Rice Prices Despite Lowered Import Duties

The farmers group Samahang Industriya ng Agrikultura (SINAG) has raised concerns over the continuing high prices of rice despite the government’s modification of import duty rates aimed at reducing costs.

SINAG President Rosendo So highlighted that their monitoring revealed well-milled rice prices ranging from P43 to P44 per kilogram, while regular milled rice stood at P42 per kilogram. “We are wondering why retail prices have yet to go down,” So commented on GMA’s “24 Oras Weekend” on Sunday.

The Department of Agriculture (DA) reported that as of June 27, 2024, rice prices in Metro Manila varied from P47 to P65 per kilogram for imported commercial rice and P45 to P65 per kilogram for local commercial rice, depending on the variety.

This situation persists despite President Ferdinand “Bongbong” Marcos Jr.’s Executive Order 62, which reduced rice tariff rates to 15% from the previous 35%, effective until 2028.

Impact of Tariff Reductions

According to So, lowering tariffs often leads exporting countries to raise their prices, offsetting the intended benefits for local consumers. “Every time we lower tariffs, the exporting countries increase their prices. The subsidy that is supposed to be collected from tariffs should go to our local farmers,” So explained. This price adjustment by exporting countries ultimately benefits their farmers while disadvantaging local producers.