NEDA to submit proposal on lower rice tariff

MANILA, Philippines — The National Economic and Development Authority (NEDA) is eyeing to submit its recommendation on the reduced rice tariff today as it continues to undertake efforts to ensure access to the staple despite external factors that can influence its prices.

Executive Order 62, which took effect last July, slashed rice tariff from 35 percent to 15 percent, a move that officials said could lower the price of the staple to P29 per kilo.

The rice tariff shall be subject to review every four months.

“We’re now finalizing the report. (We) will submit that report to the President, hopefully tomorrow (Nov. 29),” NEDA Secretary Arsenio Balisacan said at a press briefing yesterday in Malacañang.

“I can’t disclose what is in that report yet, because I want to give the President the first opportunity to read what that is. But... it basically presents the picture of the rice market this time, providing an analysis of where we are, particularly with respect to production, to supply, to demand, to prices and what to expect in the coming four months and beyond,” he said.

Asked whether he thought President Marcos’ campaign promise to lower rice prices to P20 per kilo remains doable, Balisacan said the government is monitoring market developments, but there are factors that are beyond its control.

“The retail price is hovering at around P50 (per kilo) now, right? And the goal is to reduce that further, and hence, we are continually monitoring the development in the markets. By the way, prices are not completely in our control because these are influenced by factors like world prices, these are influenced by calamities,”  the NEDA chief said.

“We can only intervene in the short term but over the long haul it is best for the country to follow the trends in the market, of course, assuring that those who have less in life are given assistance to be able to cope with, say rising prices,” he added.

Balisacan said the depreciation of the peso caused by a stronger dollar would also have an impact on the prices of rice and other goods.

“We are focused on reducing prices. As to where, how far that we’ll go, from my view, it’s something that we have to be a little bit more careful... Those are the kinds of balancing.... I can assure you, I can tell you, yes, that’s achievable but many things are moving and we don’t have control of those many other things,” he said.

At the same press briefing, Trade Secretary Maria Cristina Roque reiterated that there would be no price increases on basic necessities until the end of the year. The prices of most noche buena goods are expected to remain the same as last year’s, she added.

“For the noche buena, more than 50 percent, the price will remain the same as last year. For the others, they just increased but less than five percent,” Roque said.

According to Roque, the price adjustments on some goods are already being implemented and represent the first adjustments since last year.