The National Economic and Development Authority (NEDA) said Thursday that rice imports are still necessary to ensure the country’s food security.
NEDA Secretary Arsenio Balisacan said in a statement that the landed cost of imported rice (5% broken) in 2024 remained stable at about P39 per kilogram but is still 27% to 29% higher than last year.
“As landed cost includes tariffs and other fees, carefully adjusting tariff rates temporarily, while world prices are increasing, could help stabilize rice prices in the country,” Balisacan said.
“Despite an expected 0.7-percent increase in local rice production this year, domestic output will still fall 15 percent short of demand,” he said.
The Philippines has been facing agricultural supply challenges, which have worsened due to global disruptions and domestic policy coordination issues, resulting in higher inflation, particularly for food.
Balisacan said the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) recommended to President Ferdinand Marcos Jr. the issuance of Administrative Order (AO) No. 20, series of 2024, to enhance the country’s agricultural importation policy regime by streamlining administrative processes and removing non-tariff barriers.
“Failing to augment local production during shortages exacerbates food insecurity and perpetuates poverty,” he said. “High food prices disproportionately affect the poor and contribute to hunger, malnutrition, and stunting, hindering development goals,” he said.
NEDA acknowledged concerns from various sectors about AO 20, which aims to streamline procedures and eliminate non-tariff barriers for agricultural imports.
“We reassure the public that AO 20 is a strategic and necessary measure to ensure food security, particularly in terms of availability and affordability of food, and improve the overall welfare of Filipinos,” Balisacan said.
He the Philippine Development Plan 2023-2028 also focuses on transforming the agriculture sector through comprehensive strategies and reforms aimed at increasing productivity and farm incomes.
Addressing these challenges requires sustained efforts to improve infrastructure, promote modern technologies, enhance market access for local producers and build resilience to climate change, Balisacan said. However, he acknowledged that realizing the benefits of these interventions may take time.
“In the meantime, it is important to ensure an adequate supply of necessary food items,” he said.
Balisacan said AO 20 also supports the Philippines’ overall economic stability and long-term prospects as a rising and fast-growing economy in Asia.