CITY OF MALOLOS — Central Luzon farmers, along with rice and palay traders, have expressed their apprehensions about the possible implications of lowering the tariff rate on rice importations.

Reports said the National Economic and Development Authority Board, chaired by President Ferdinand Marcos Jr., approved the new Comprehensive Tariff Program for 2024-2028, which includes the reduction of rice tariffs for in-quota and out-quota rates from 35 to 15 percent.

As this developed, some Central Luzon farmer leaders and local rice stakeholders are wary that reducing the tariff on imported rice would lead to a flooding of imported rice in the local market, to the detriment of the local rice industry.

Simeon Sioson, chairperson of the 4SM Agri Multi-Purpose Cooperative in San Miguel, Bulacan, said the lower tariff rate on imported rice would definitely benefit rice consumers because it would lead to a cheaper price for the staple grain.

However, cheaper imported rice may cause stiff competition with local rice that may lead to lower palay prices, to the detriment of local farmers, Sioson noted.

He pointed out that currently, the National Food Authority is buying fresh palay at P23 per kilo and P30 per kilo for clean and dry palay.

On the other hand, Liza Sacdalan, chairperson of the Central Luzon Organic Rice Producers Association, cited that the lower tariff on imported rice is expected to hit the local market priced at P29.00 per kilo.

At this price range, the local price may nosedive to around half the price of the government support price of P23 per kilo for fresh palay and P30 per kilo for clean and dry palay.

Tony Santos, a wholesale rice trader from Bulacan, said the apprehensions of the farmers are the same as those of rice and palay traders in the region.

Santos confided that many palay and rice traders in Central Luzon have started stockpiling before the Holy Week with clean and dry palay priced at an average of P31.00 to P32.00 per kilo, depending on quality and palay varieties.

The stockpiling of palay by commercial palay and rice traders is in preparation for the rice lean months in August, September, and October, Santos explained.

However, palay prices have gone down by an average of P4.00 to P5.00 right after the Holy Week, wholesale rice and palay traders in Bulacan claimed.

With the lower tariff on imported rice, Santos said an influx of cheaper imported rice could push farm gate palay prices down to an average of P15 in the coming palay harvest for the wet season.

Rosendo So, president of Samahang Industriya sa Agricultura (Sinag), explained in a text message that with the price of rice expected to go down to P29.00 per kilo due to the lower tariff on rice importations, this will cause farm gate prices of palay to go down to P13.00 per kilogram for fresh palay and P15.00 for clean and dry palay.

Meanwhile, Raul Montemayor, national chairman of the Federation of Free Farmers, said in a text message, “Malamang ganyan nga mangyayari. At $600/ton x P58 x 20 percent instead of 35 percent tariff, the tariff will be reduced by P7.00/kilo which translates to P4.50/kilo reduction in palay prices.”

File photo: Mon Lazaro