Rice import suspension not inflationary - Balisacan

Metro Manila, Philippines - The rice import suspension beginning Sept. 1 will not be inflationary, Socioeconomic Planning Secretary Arsenio Balisacan said on Thursday, Aug. 7.

President Ferdinand Marcos Jr. ordered a pause on imports for 60 days to protect farmers hit by low farmgate prices during the harvest season.

READ: Marcos suspends rice importation, holds off tariff hike 

“If you look at the total inventory of rice in the market, even if we suspend the importation during the harvest season from September to October, there will be enough supply,” Balisacan said during a briefing on the second quarter economic performance.

“It's not likely going to cause increases in inflation,” he added.

As of July 1, the Philippine Statistics Authority said inventory of the staple was around 2.815 million metric tons.

Some rice traders have warned against possible price spikes once the policy takes effect.

Industry stakeholders also reported farmgate prices on palay have bottomed out at P6 per kilogram as imported grain flooded markets.

Marcos slashed rice tariffs last year from 35 percent to 15 percent to lower retail costs.

The Department of Agriculture said that from over $700 per metric ton last year, Vietnamese rice DT8 variety, a widely favored rice type in local markets, now sells for $470 per metric ton.

“Of course, we have to keep watching and looking vigilant because world prices can change suddenly,” Balisacan said. “We have to make sure policies are flexible enough to address all these changes in the marketplace.”