DAVAO CITY (MindaNews/20 Dec) — The move by the government to slash tariffs on rice won’t have an abrupt effect on the prices of the staple, an official from the Department of Agriculture (DA)-Region 11 said.
President Ferdinand Marcos Jr. signed on December 9 Republic Act No. 12078, amending the Agricultural Tariffication Act (ATA) to extend the Rice Competitiveness Enhancement Fund until 2031 and increase its annual budget from ₱10 billion to ₱30 billion.
It is a strategy to reduce rice prices, but there have been no significant decreases, DA-11 price monitoring lead Agnes Roble said during the AgriBiz Forum at SM Lanang Premier, Thursday morning.
She, however, added the effect might be seen after several weeks.
DA-11 Information Officer Celso Vergara said the amendments to ATA would not be immediate in the region, which has a rice sufficiency of only 56 percent. Most of the rice produced in the region comes from Davao del Norte, Davao del Sur, and Davao de Oro.
“We are still getting supply from our neighboring regions and even imports,” Vergara added.
In his speech during the signing of RA 12078, Marcos said the DA will be empowered to take the necessary actions to stabilize the market in case of rice shortages or price hikes.
“This will help ensure that the price of rice remains affordable and accessible to every Filipino,” he said.
RA 12078 aims to improve rice production by funding initiatives such as seed production, farm mechanization, training, and pest management. It also enhances regulatory measures for rice quality, food security, and price stabilization to support local farmers and ensure a stable rice supply in the country.
Earlier, Marcos through Executive Secretary Lucas Bersamin, signed Executive Order No. 62 on June 20, cutting down rice tariffs from 35 percent to 15 percent starting on July 6.
The EO said the rice tariffs were adjusted “to augment supply, manage policies, and temper inflationary pressure of various commodities.”
Roble said their agency will monitor rice prices in coordination with the Department of Trade and Industry to comply with RA 7581 (Price Act), as amended by RA 10623, and prevent any attempts at hoarding or price manipulation.
“But for our region, we do not have any rice cartels or those people who manipulate rice prices,” she said.
If rice prices increase in the future, Roble said it should be minimal and caused by the demand created by the holiday season.
‘No effect’
At Bankerohan Public Market, one of the largest public markets in the city, rice vendors admitted they have yet to significantly decrease prices despite the tariff cuts.
The vendors said that from July to December they have reduced their prices by only P0.50 to P3 per kilo but made no huge increases, either.
As of December 20, rice prices at the market ranged from P45 to P56 per kilo depending on the variant.
Jay Eliseo, a rice vendor, said they have not felt the intended effect of the tariff cuts especially on imported rice. He said they can do nothing but depend on the prices set by their suppliers.
June Mahinay, another rice vendor, shared a similar sentiment, saying the government should find more ways to decrease rice prices “if it’s serious in its promise to help the poor.”
Mahinay said that aside from reducing tariffs, the government should also help the farmers who help in nation-building by producing food. (Ian Carl Espinosa/MindaNews)
