MANILA – Rice prices can go down to as low as P30 to P32 per kilo possibly this year as the new law easing rice import restrictions takes effect, the Department of Trade and Industry (DTI) said Monday.
DTI secretary Ramon Lopez is optimistic that rice prices can reach their lowest levels with the entry of more rice from abroad under the rice tariffication law.
Lopez told reporters after a press briefing on rice importation under the new law that rice currently sold at prices ranging from P34 to P38 per kilo is now available in the market, P7 to P9 lower compared to over P50 a kilo when inflation reached its peak last year.
Once more private traders import rice, he said “hopefully, it can be even below P30. I’m not just committing, let market forces determine.”
Republic Act 11203, or the Rice Liberalization Act, allows the private sector to freely import rice subject to a tariff. It also removes the regulatory and import licensing functions of the National Food Authority (NFA).
The trade chief said prices will be the ‘determinant’ whether private sector may still need to import rice or not.
“That’s the free market mechanism so hindi na government nagsasabi bawal ka magpasok (the government will no longer say importation is not allowed). Kaya wala na import permit (That is why, there is no need for an import permit,” Lopez added.
Under the Rice Liberalization Act, importers are just required to obtain sanitary and phytosanitary import clearance to be issued by the Department of Agriculture-Bureau of Plant Industry to protect the agriculture and consumers from diseases, pests, or contaminants. (PNA)
