Photo by RMN Networks
Senior Vice Chairperson of the Appropriations Committee and Marikina Representative Stella Quimbo has proposed temporarily suspending tariffs on imported rice to align its price with locally produced rice and make it affordable for the citizens.
During a hearing at the House of Representatives on the proposed 2024 budget of the Department of Agriculture (DA), Quimbo explained that removing tariffs on imported rice would almost equalize its price with locally produced rice before factoring in storage and marketing costs.
Quimbo pointed out that the current landed cost of imported rice is around ₱20, which increases to ₱30 to ₱40 when tariffs are applied. Quimbo expressed confidence that this move would not create issues, as there is still a remaining fund of nearly ₱10 billion for the Rice Competitive Enhancement Fund (RCEF) from 2022 to 2023, which can continue to support farmers in line with the Rice Tariffication Law.
During the budget hearing, Quimbo also raised concerns about the potential exploitation by private rice importers during periods of low rice supply in the country, which might lead to cartel formation.
Quimbo emphasized that vigilant monitoring is necessary to prevent a situation similar to the onion cartel, where supply was constrained and a false shortage was created to excessively inflated prices.
