The Department of Finance (DOF) proposed a temporary reduction of the 35-percent rice import tariff rates to zero or a maximum of 10 percent, to arrest the surge in prices.
Finance Secretary Benjamin Diokno also said the economic managers fully support the decision of President Ferdinand Marcos Jr. to impose a price cap on rice.
“Executive Order No. 39 was issued by the President as the chief executive and the concurrent secretary of the Department of Agriculture. EO 39 serves as a lifeline, extending much-needed relief to Filipinos grappling with the high rice prices,” Diokno said.
Under EO 39, the government set the mandated price of regular milled rice at P41 per kilogram and well-milled rice at P45 per kg.
Diokno said the economic team views EO 39 as an essential stop-gap measure and underscored the importance of supplementing it with additional measures to achieve long-term rice price stability in the country.
“We agree with the President that implementing a price cap on rice is the most prudent course of action at the moment to achieve two critical objectives: stabilizing rice prices and extending immediate support to our fellow countrymen,” Diokno said.
He said the imposition of a price cap on rice was geared at addressing non-competitive practices by some market players and discourages hoarding, thereby reducing the price of rice.
But Diokno said EO 39 could be proven effective in the near term, but should not persist for an extended period.
He said the President directed the economic team to implement measures to mitigate the negative impact of the price controls on rice retailers and farmers.
Diokno also cited the importance of encouraging timely rice imports by the private sector. The full implementation of the Super Green Lane, which allows for advance processing and clearance of shipments for the country’s top-qualified importers, has also been proposed to expedite rice imports.
“We are advocating cooperation with tollway concessionaires and operators to temporarily exempt trucks catering to agricultural goods from increased toll fees, ensuring the efficient transportation of rice,” Diokno said.
The government also aims to curb non-competitive behavior in the rice industry by actively pursuing cases of hoarding, smuggling, and economic sabotage. Diokno said that there should also be strict monitoring of the prices of imported rice throughout the logistics chain.
The President asked the DA and the Department of Trade and Industry to monitor rice prices by making rounds in markets and storage facilities.
The Inter-agency Committee on Inflation and Market Outlook, which the DOF co-chairs, will continue to monitor developments in food and non-food inflation in order to effectively identify the measures needed to mitigate inflationary pressures.