Rice prices to go down by six to seven pesos once tariff rate cuts are implemented
Rice prices are expected to reduce from six to seven pesos per kilo once reduction of tariff rates is implemented, an official of the Philippine Statistics Authority (PSA) said Wednesday.
In a press conference on Wednesday, PSA Undersecretary Claire Dennis Mapa said based on their "quick estimate" the tariff reduction would have a large contribution to rice inflation.
"Our very quick estimate on the impact of rice per kilo, that would have a large impact on the price of rice per kilo, for the reduction on the tariff it is about 6 to 7 pesos," he said.
"Once the price has decreased because of tariff reduction in the coming months we would be expecting reduction in the price of rice, reduction in the rice inflation and this would trigger, if there is no inflation in other (products and services) the reduction in the inflation rate moving forward," he added.
Mapa said although rice inflation slightly slowed down in May to 16.6 percent from 16.9 percent in April it remains to be one of the major contributors under the food and non-alcoholic beverages which is the primary commodity group that shares 56.6 percent in the overall inflation.
He noted that the slight decrease in the price of rice in the country was due to the incremental decreases in world rice prices.
"We are also looking at world data on the price of rice, which is continuously decreasing. I am looking at the average world price from Thailand and Vietnam," said Mapa.
"January actually is the peak with a price of 64 US dollar per kilo, and then it decreased in February, March and April but it only has small incremental decreases. In terms of world prices, (it is) going down and that is why we are also seeing slight decreases in retail price here in the country," he added.
The 15 percent from 35 percent tariff reduction for rice that is part of the Comprehensive Target Program (CTP) for 2024-2028, was approved by the National Economic and Development Board (NEDA) Board led by the President, during its 17th board meeting last Monday to help stabilize the price for rice in the next four years.
In a press briefing on Tuesday, National Economic Development Authority (NEDA) Secretary Arsenio Balisacan said President Ferdinand Marcos Jr., will issue an executive order for the implementation of the new tariff program. Robina Asido/DMS
