Philippines cuts rice tariffs to ensure food security, fight inflation

• May 17, 2021

MANILA (CNA) – Philippines President Rodrigo Duterte reduced the tariff for imported rice on Saturday to ensure food security and protect consumers in the world’s biggest importer of the grain.

The Southeast Asian nation, which is battling elevated inflation, took into consideration the increase in global rice prices and uncertainties in local rice supply, the president’s office said in a statement.

In an executive order, Duterte cut the Most Favoured Nation (MFN) tariff rates on rice to 35 per cent from 40 per cent for in-quota purchases and 50 per cent out-quota volume for one year “to diversify the country’s market sources, augment rice supply, maintain prices affordable, and reduce pressures on inflation”.

In January, the Agriculture Ministry projected the country to import at least 1.7 million tonnes of its staple food this year to fully cover domestic requirements. It buys more than 90 per cent of import requirements from Vietnam.

The Philippines’ paddy rice output rose 2.6 per cent to a record 19.3 million tonnes last year, government data showed. The Agriculture Ministry targets unmilled rice output at 20.5 million tonnes this year.

Over 20 tropical storms hit the Philippines annually, with the strongest typhoons destroying crops like rice and corn in the second half, the peak harvest season.

Source: https://borneobulletin.com.bn/philippines-cuts-rice-tariffs-ensure-food-security-fight-inflation/