BBM formalizes rice tariff cut through EO 62

The government has lowered the tariff on imported rice from 35 percent to 15 percent until 2028, which President Marcos' economic managers believe could bring down the price of the staple to P29 a kilo.

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Executive Order (EO) 62, signed by Executive Secretary Lucas Bersamin by the authority of the President on June 20, modified the nomenclature and rates of import duty on various products, including rice, for the period 2024-2028.

The levy on rice, which covers both in-quota and out-quota rates, is subject to review every four months based on the EO.

"As may be necessary and/or as may be directed by the President, the comprehensive and/or specific MFN (Most Favored Nation) tariff listed...shall be subject to periodic review," the order read.

At a Palace briefing earlier this month, Socio-economic Planning Secretary Arsenio Balisacan said the move was seen to bring down the price of rice to P29 a kilo.

"The Department of Agriculture (DA) is aiming for a reduction (to) P29 per kilo, at least for the poor, because we will complement this tariff reduction with the direct subsidies to the poor and vulnerable so that at least they could access the food," Balisacan said.

The Philippine Statistics Authority (PSA) reported a substantial decrease in the overall rice inflation last month from 23.9 percent in April to 23 percent in May as well as a slight decrease in its retail prices.