RICE PRICES TO FURTHER DECREASE – MARCOS

The President of the Philippines has expressed optimism that the cost of rice would continue to go lower as seen in neighboring countries (Photo courtesy of Edd Gumban/Philippine Star)

President Ferdinand Marcos Jr. expressed confidence that rice prices in the Philippines would further decrease amid the current price trend happening in Southeast Asia despite rice as the top inflation driver in the country.

The Presidential Communications Office (PCO) said in a statement that Marcos made the pronouncement during a sectoral meeting on managing food and non-food inflation in Malacañang.

“In rice, it seems to be following our projections on rice prices. And it seems to be consistent again with the same experience of other Asean countries like Thailand and Vietnam. So, I think as the time goes on, that should improve," Marcos said.

As data for September, prices of rice in Vietnam and Thailand moderated last month showed a decline in prices. In the Philippines, rice contributes 1.3 percent to inflation. Inflation further decelerated to 14.7 percent, but prices remained elevated.

Furthermore, the PCO said following the implementation of reduced tariffs under Executive Order No. 62, s. 2024, the landed cost of imported rice also further declined by 15 percent (around P7 per kilogram) as of mid-September. The order slashed rice tariff from 35 percent to 15 percent effective July 8.

On the other hand, Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. said rice prices are expected to start declining in October because of the reduced tariff. 

“But the full effects, for me, range from P5 to P7 so I will put it at P5 reduction in price. If the rice costs P52 per kilo now so by January it should be at P47. If the rice costs P59 now, it should be P45 by January. Those are my estimates.”

“But since demand for food usually spikes in December, we anticipate seeing a more substantial drop in rice prices by January,” Tiu Laurel added.

Marcos also stressed that the country has to resort to sugar importation to ensure supply and stabilize prices as the retail price of refined sugar continues to be elevated at 35 percent, higher than the January 2022 level.

Source: The Manila Times 

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