Rice traders pocket P5B in tariff cuts, farmers claim

The Federation of Free Farmers claims that rice traders are pocketing approximately P5 billion worth of savings from the tariff cut implemented under Executive Order 62, despite the reduction in tariffs on imported rice.

Despite the lower tariffs, rice prices have only decreased by 40 centavos according to Philippine Statistics Authority data, prompting farmers to argue that importers, wholesalers, and retailers are benefiting instead of consumers.

Agriculture Secretary Francisco Tiu Laurel Jr. maintains that older stock purchased at higher prices is still being consumed, giving retailers time to replenish their stores with cheaper rice as the harvest season begins in late September.

Farmers anticipate a decline in rice prices starting late September due to the start of the main crop harvest and increased supply from lower tariffs, while the Department of Agriculture expects more significant price reductions by January.

The FFF estimates that rice traders have absorbed a P6.70 per kilogram saving from the lower tariff, with total savings estimated at over P5 billion for imports between July and mid-September.