President Ferdinand Marcos, Jr approved last week the reduction of tariff of imported rice from 35 percent to 15 percent until 2028.
In a Palace briefing, Socioeconomic Planning Secretary Arsenio Balisacan underscored that the lower rice tariff would bring down the price of rice to P29 a kilo for poor households.
We understand the political dimension of this populist decision to lower rice prices. The President was voted into office by 31 million Filipinos because of his P20-a-kilo-of-rice campaign vow. This commitment to make quality rice affordable to Filipinos, however, remains just that – a promise – which is far from being fulfilled as rice inflation last month is at 23%, according to the Philippine Statistics Authority.
While the goal of the rice tariff reduction plan is certainly a good pogi point for the government, the proposed reduction, which was “not made lightly,” borrowing the words of Secretary Balisacan, has to be reconsidered.
Some quarters have already expressed apprehension on the matter.
It is a case of expectation versus reality.
Farmers groups expressed disappointment saying the National Economic and Development Authority had not consulted them.
For one, there would be foregone revenues, estimated up to P22 billion according to the Department of Finance, due to decreased tariff collections. This would impact on the support to the Rice Competitiveness Enhancement Fund (RCEF). RCEF receives its funding from tariffs generated from imports.
Also, the plan to cut tariff on rice imports is akin to “suicide” – a point raised by the President’s Super Ate Senator Imee Marcos – as local farmers would not be able to compete with cheaper rice imports.
Let us therefore not shortchange our farmers at the altar of political expediency.
Government should put its money where its mouth is. Invest in our farmers. Invest in agricultural modernization and agricultural productivity. We hope to see this in the 2025 National Expenditure Program.
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Dennis Ting is a former director at the Department of Budget and Management.
