Metro Manila, Philippines — The country will not reach the projected record-high importation of rice this year even with reduced tariffs, the Department of Agriculture (DA) said.
This outlook is different from the US Department of Agriculture’s revised projection for the Philippines to import an estimated 4.7 million metric tons (MMT) of rice this year. This is higher than the previous month’s forecast of 4.6 MMT.
“I don’t think the lowering of tariff will really increase importation,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a post-SONA discussion in Pasay City on Tuesday, July 23.
“It’s basically demand-driven. I really don’t think aabot tayo ng 4.7 [we will reach 4.7 million MT],” he added.
As of July 11, the country imported nearly 2.37 MMT of rice, data from the Bureau of Plant Industry showed.
President Ferdinand Marcos Jr. has issued an executive order to cut rice tariffs from 35% to 15%. While the government sees this as a way for retail prices to go down, a number of groups said the policy would hurt local producers.
Marcos admitted in his third State of the Nation Address the high cost of the staple at ₱45 to ₱65 per kilogram.
He said while harvest was over 20 MMT in 2023, it was insufficient to cover demand, forcing the government to import.
The National Economic and Development Authority explained that food inflation had the lion’s share of overall inflation rate with regional conflicts affecting world prices, meat supply issues and the impact of El Niño.
