Palace defends EO lowering rates of import duty on rice
Malacanang justified on Monday President Rodrigo Duterte's issuance of an executive order lowering rates of import duty on rice.
This was after a group of farmers questioned the issuance of an EO despite having no urgent need to augment the rice supply.
"Well, perhaps this is just to ensure that we will have enough supply of rice," said Presidential Spokesperson Harry Roque in a press briefing as he noted that the country is experiencing hotter days.
"So we don't know it's effect on our palay crop, but I'm sure there will be an effect," he said.
Under EO 135, which Duterte issued on May 15, a copy of which was only released on Monday, the 50 percent out-quota and the 40 percent minimum access volume tariffs on rice imports will go down to 35 percent for one year.
The EO read that despite an increase in the total stock of rice, the estimated local production may still fall short of the total demand, necessitating importation from other countries.
It also noted the continuous increase in the price of rice from other countries, especially those imprted from the Association of Southeast Asian Nations region.
"The current global economic siatuation brought about by COVID-19 pandemic, as well as other factors affecting the country's traditional sources of imported rice, cause uncertainty in the steady supply of rice," said the EO.
Citing the increase in global rice prices and the uncertainties relative to the supply of rice, the EO said, "there is an urgent need to temporarily reduce the Most Favoured Nation tariff rates on rice, to diversify the country's market sources, augment rice supply, maintain affordable prices, and reduce inflationary pressures, all for the purpsose of ensuring food security in the country and protecting consumers."
But Federation of Free Farmers National Manager Raul Montemayor earlier said there was no need to diversify the foreign sources of the country's rice because under the Rice Tarrification Law, importers are already free to bring in rice from any country for as long as they pass the quarantine regulations.
He also said there was no urgent need to increase rice supply, citing figures from the Philippine Statistics Authority that as of March 1, the national rice inventory was at 2,080 metric tons, or only 4.5 percent lower than last year.
Montemayor has said that the stock level would have been augmented by the recent dry season harvest. Celerina Monte/DMS
