Rice import arrivals have slowed down as traders and importers are still unloading their previous imported stocks while others remain cautious in bringing in new shipments pending the Supreme Court resolution of a petition against Executive Order (EO) 62, which lowered rice tariffs.
Bureau of Plant Industry (BPI) data as of July 20 showed that rice imports levied with a lower 15 percent tariff rate have reached 56,073 metric tons – nowhere near the average monthly import arrival of about 400,000 MT from January to June.
Department of Agriculture (DA) Assistant Secretary and spokesman Arnel de Mesa said rice importers and traders may be still unloading their earlier stocks, which were imported at a higher tariff rate of 35 percent, before bringing in new stocks under the lower tariff regime.
De Mesa noted that some rice traders and importers were hesitant to import pending the decision of the Supreme Court on the case filed by certain groups against EO 62. The reduction of rice tariffs to 15 percent until 2028 is part of EO 62 earlier issued by President Marcos.
The agriculture official said the DA expects the import arrivals to pick up in the coming weeks, with a substantial volume entering this month that would have a “significant” effect on pulling down retail rice prices in the market.
In an earlier interview, De Mesa said the DA estimates that prevailing rice prices would fall below P50 per kilogram once the imported rice stocks with lower tariff rates start to be sold in the market.
The USDA’s Foreign Agricultural Service unit (USDA-FAS) in Manila earlier noted that there might be “some motivation” for rice traders and importers to sell their current stocks to prevent losses from the arrival of “lower priced” supplies as a result of the tariff reduction.
“But industry sources report that traders are holding steady on stocks, particularly as they bought at a higher price and are still hoping for better margins,” the USDA-FAS Manila said in a report.
From January to July 20, nearly 2.4 million MT of rice arrived in the country, the latest BPI data showed.
The retail price of imported well-milled rice in Metro Manila ranges from P51 to P53 per kilogram while regular-milled rice is sold between P47 and P48 per kilo, based on the latest price monitoring report of the DA.
Source: MSN
