The Department of Agriculture (DA) said the P6 to P7 per kilogram reduction in the price of imported rice due to lower tariffs may be experienced by August.
This would likely influence prices of locally-produced rice which has to compete with imports, the agency said.
Arnel de Mesa, DA assistant secretary, in a press briefing made this assessment based on the expected arrival of rice with lower tariffs by July.
“Imported rice usually reaches the country in two to three weeks . If (imports) start arriving by July, maybe by August we can feel (the effects on prices,)” de Mesa said.
The DA said 20 percent of rice in the market is imported.
De Mesa said the DA is set to allocate a bigger budget for fertilizers for distribution next year to help rice farmers.
The National Food Authority (NFA) will also continue procuring local palay to help increase the buying prices of traders.
In a separate statement, DA Secretary Francisco Tiu Laurel Jr. expressed optimism the reduction in the duties on imported rice to 15 percent from 35 percent will drive down retail prices of the grain.
“We will do everything within our power, especially those granted to the Department of Agriculture under the Price Act, to make sure the substantial cut in rice tariff will translate to a significant reduction in retail price of the grain,” Tiu Laurel said.
He said the DA will endeavor to fill, through the agency’s budget, the potential shortfall in the funding for the Rice Competitive Enhancement Fund, a P10- billion fund for farm mechanization, provision better seeds, funding for technology enhancement and farmer training and other financial support.
Tiu Laurel said the DA will seek Congress’ support for a bigger budget for fertilizer subsidy as well as financial backing for the NFA to maintain a reasonable buying price for palay.
Tiu Laurel said NFA and the National Irrigation Administration are expected to continue their contract growing projects to create a good market for rice farmers willing to join the program.
Based on DA’s monitoring of public markets in the National Capital Region, the price as of last Tuesday of local well-milled rice is between P48 and P55 per kg and regular milled, P45 to P52 per kg.
The price of imported well milled rice is at P52 to P55 per kg, while the price range of imported regular milled rice is at P49 to P51 per kg.
Imported rice ranges from P57 to P65 for the special variety and P52 to P62 for premium.
For local rice, the special variety costs P57 to P66 per kg and premium, P51 to P58 per kg.
