PORT congestion in the Philippines remains a big problem in the agriculture industry, especially in the price of imported rice, Agriculture Secretary Francisco Tiu Laurel Jr. said on Monday, Sept. 16.
A total of 500,000 metric tons of imported rice have arrived in the country since the lower rice import tariffs took effect, but the price of rice is still up. Laurel said slow unloading due to port congestion plays a factor.
“Port unloading is low. Twenty ships are in Bataan. There are also ships waiting to be unloaded in Subic, Manila and Batangas,” he said.
He said ships with a capacity of 10,000 metric tons pay around $7000 for every day they stay in ports. Aside from this, previously imported rice with higher tariffs has not been fully consumed yet.
Several agricultural groups who previously opposed the lowering of tariffs slammed the agriculture department, saying tariff reduction isn’t effective in lowering the price of rice.
When the tariff on imported rice was lowered from 35 percent to 15 percent in July, rice prices were expected to go down by up to P7 per kilo. Laurel said lower rice prices may be felt in the coming months.
“I would expect the price to go down mid-October with the shipments that have arrived,” he said.
“Hopefully [lower] by P5 per kilo at least,” he said. (ABS-CBN News)
