Keep rice tariffs low, OECD tells PH gov't

As plans to raise the tariff rate on rice imports begin to take shape, the Organization for Economic Cooperation and Development (OECD) is urging the Philippine government to reconsider and instead maintain the lower tariffs as a measure to keep prices stable.

- By DEXTER BARRO II

In its annual report on global agricultural policies, the OECD welcomed the Philippine policy reducing tariffs on rice imports, describing the move as a "positive development."

Effective July 8 last year, President Marcos signed Executive Order (EO) No. 62 to reduce the rice tariff from 35 percent to 15 percent.

The OECD, which serves as a forum for like-minded nations to develop policy standards, stated that the measure aimed to lower the cost of rice and help control inflation.

As the country’s main food staple, higher rice prices often contribute to quicker inflation rates given their substantial impact on the consumer price basket.

The Department of Agriculture (DA) said the 15-percent tariff rate, alongside other initiatives such as the implementation of a maximum suggested retail price, brought down prices of imported rice from over P60 per kilo last year to just around P43 per kilo this year.

EO No. 62, which also updates the tariff schedule for other key agricultural products, such as corn and pork, will remain in effect until the end of 2028.

The OECD recommended that the lower rice tariff be made permanent and possibly extended to other commodities facing supply constraints.