Budget Sec Diokno, Finance Sec Recto discuss tariff cut on imported rice to reduce prices, inflation

At an Economic Forum organized by the Economic Journalists Association of the Philippines and San Miguel Corp, Budget Secretary Benjamin Diokno discussed President Ferdinand Marcos Jr.'s Executive Order reducing tariffs on imported rice.

Finance Secretary Ralph G. Recto echoed Diokno's statement that lowering the tariff from 35 percent to 15 percent could reduce retail prices by about 10 percent, potentially bringing rice below P50 as early as August.

In June, rice accounted for 53.5 percent of overall inflation for average consumers and 79.6 percent for those in the bottom 30 percent of households, with Bangko Sentral ng Pilipinas Governor Eli Remolona noting that rice has been the primary driver of inflation since August 2023.

Recto emphasized that reducing tariffs could also lower full-year inflation by 0.18 percentage points and improve welfare for households, especially the poor, despite expected revenue losses of P9.2 billion for the rest of the year.

The Department of Agriculture's price monitors reported well-milled rice selling in Metro Manila markets for as much as P55 per kilo last June, highlighting the impact of tariff reduction on prices and inflation.