Rice prices to drop in Oct, more by Jan as tariff cut takes effect

Agriculture Secretary Francisco Tiu Laurel Jr. stated on Wednesday that consumers can expect a reduction in rice prices starting in October, with a more significant drop anticipated by January due to the government's decision to lower the tariff rate for imported rice.

Executive Order No. 62, signed by President Ferdinand Marcos Jr., reduced the tariff from 35% to 15%, effective July of this year, and is expected to bring down rice prices further with more imports entering at lowered tariffs.

Despite the order, Tiu Laurel noted that current rice prices have not yet dropped significantly because traders increased imports in anticipation of a supply shortage caused by El Niño, but port congestion has delayed the release of these imports.

NEDA Secretary Arsenio M. Balisacan said there is a significant amount of imported rice coming into the country due to tariff reductions and global market developments, though high global prices may limit immediate price drops.

Economists like Leonardo A. Lanzona suggest that while rice prices could fall by October, they might not drop significantly due to port congestion or importers' control over release schedules, emphasizing the need for increased domestic production to stabilize supply.