NATIONAL Economic and Development Authority (NEDA) Secretary Arsenio Balisacan on Monday, June 10, defended the board’s move to cut the tariff rate on imported rice, noting the move aims to ensure that Filipinos have access to nutritious and affordable food, particularly rice, while managing inflation and sustaining growth.
Balisacan said the decision to reduce the tariff rate from 35 percent to 15 percent “was not made lightly.”
He issued the statement after farmers’ groups called for his resignation following the announcement of the tariff cut.
“We are aware of the concerns raised by our farmers regarding the recent decision of the NEDA Board to reduce the tariff rate of rice. We understand the apprehensions and emotions that this decision has caused,” Balisacan said.
He said the NEDA Board, composed of different Cabinet members and chaired by President Ferdinand R. Marcos Jr., has unanimously approved the Committee on Tariff and Related Matters (CTRM) recommendation on the new Comprehensive Tariff Program for 2024-2028.
He added that before the decision, the Tariff Commission (TC) held extensive consultations and reviews under the Customs Modernization and Tariff Act (CMTA).
Balisacan said the consultation began as early as March 2023 with 801 stakeholders, including 192 from the agriculture sector.
In the most recent comprehensive tariff review, he said the TC also received position papers and comments from 41 private sector parties, a consumer group, 15 government agencies, and a member of the House of Representatives.
Based on the inflation report of the Philippine Statistics Authority for the past three months, rice contributed over 50 percent to the headline inflation.
“Reducing rice tariffs is expected to bring down rice prices for consumers while supporting domestic production through tariff cover and increased budgetary support to improve agricultural productivity, especially as global rice prices remain elevated,” Balisacan said.
In a separate interview on the sidelines of the launching of the Digital National ID, Balisacan said the Marcos administration’s priority is increasing the productivity of the agriculture sector.
Balisacan noted that raising productivity is the only way to improve farmers’ welfare.
On calls for his resignation, Balisacan said it is up to the President to choose his Cabinet members. (Philippine News Agency)
