NEDA to submit reduced rice tariff recommendation amid price challenges in Philippines

PHILIPPINES – The Philippine National Economic and Development Authority (NEDA) is set to submit its recommendation on the reduced rice tariff as the government continues efforts to stabilize the price of the country’s staple food.

Executive Order No. 62, implemented in July, slashed rice tariffs from 35 percent to 15 percent—a move officials hoped would bring down rice prices to as low as ₱29 (US$0.52) per kilogram.

However, current market prices hover around ₱50 (US$0.89) per kilogram, raising questions about achieving President Marcos’ campaign promise of ₱20 (US$0.36) rice.

In a press briefing at Malacañang yesterday, Arsenio Balisacan, NEDA Secretary said the recommendation will be submitted to President Marcos, offering an analysis of the rice market situation, including production, supply, demand, and price trends.

“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,” Balisacan said.

“But it basically presents the picture of the rice market this time, providing an analysis of where we are… and what to expect in the coming four months and beyond.”

When asked about the feasibility of the ₱20 (US$0.36) per kilogram target, Balisacan acknowledged the complexities, pointing out external factors like world market prices, calamities, and currency fluctuations.

“The retail price is hovering at around ₱50 [per kilo] now.  The goal is to reduce that further, and hence, we are continually monitoring developments in the markets,” Balisacan said.

He highlighted the impact of peso depreciation against the US dollar, noting that it could drive up the costs of imported rice and other goods.

While short-term interventions may help stabilize prices, Balisacan stressed the importance of balancing government efforts with long-term market trends.

“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,” he said, adding that targeted assistance would be provided to vulnerable sectors.

Stable prices for the holiday season

Meanwhile, Maria Cristina Roque, Trade Secretary, assured the public that there would be no price hikes on basic necessities until year-end.

Speaking at the same briefing, Roque said prices for most noche buena goods, staples of the Filipino Christmas table, would remain stable.

“For the noche buena, more than 50 percent [of goods] will have the same prices as last year,” she said, adding that any increases on other products would be less than five percent.

Roque also noted that adjustments already being implemented represent the first since last year, emphasizing efforts to shield consumers from the economic pressures of the season.

Balisacan revealed that the reduced rice tariff will be reviewed every four months, and its impact will be closely monitored by NEDA and other agencies.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.