September 23, 2024 | 12:00am
MANILA, Philippines — The government has collected at least P25 billion in tariffs from over 2.8 million metric tons (MT) of imported rice from January to August, latest Bureau of Customs (BOC) data showed.
BOC data showed rice tariff collections during the eight-month period reached P25.767 billion, about 16.4 percent higher than the P22.139 billion recorded in the same period last year.
The uptick in tariff collections could be attributed to the increase in import volume coupled with the higher declared value of shipments.
The country imported 2.865 million MT of rice during the period, about 23.73 percent higher than the 2.316 million MT recorded a year ago, based on BOC data.
The average rice import price, meanwhile, rose by 31.23 percent year-on-year to $512 per MT from $390.25 per MT last year.
Rice export prices have remained elevated this year due to tighter global market supplies caused by the persisting export ban imposed by India on its non-Basmati rice stocks, as well as lackluster output in key producing countries caused by extreme weather conditions.
More so, the situation has been aggravated by the higher import demand from Indonesia and the Philippines as the two countries seek to plug the shortfall in their domestic supplies to arrest a spike in retail prices of the commodity.
The Philippine government reduced the rice tariff rate to 15 percent – the lowest in history – from 35 percent as it aims to pull down elevated retail prices through the entry of more affordable foreign supplies.
However, frustration continues to mount from various quarters of the rice industry as the price reductions of P5 to P7 per kilo projected by government officials have not materialized more than two months after the tariff reduction took effect.
Government officials have pointed out that traders are still disposing their old stocks to make room for the newer imports levied with lower tariff rate. However, some rice traders and importers have cautioned that export prices have surged in the global market, particularly from key supplier Vietnam, negating the slash in tariff rate.
“It does not make sense for traders to hold on to cheap stocks imported with 15 percent tariff while retail prices are still high. They are in fact maximizing their profits now instead of passing on their tariff savings to consumers,” said Raul Montemayor of the Federation of Free Farmers.
Tariff collections from rice imports in August fell by 37.5 percent on an annual basis to nearly P1.7 billion as a result of the lowering of the tariff rate on the staple.
BOC data showed that rice tariff collections last month reached P1.688 billion, some P1.014 billion lower than the P2.702 billion recorded in the same month a year ago.
Rice imports expanded by a double-digit rate for the second consecutive month as volumes last month rose by a quarter year-on-year to 383,746.531 MT.
BOC records show that over 581,000 MT of rice have entered the country at a reduced tariff rate between July and August.
Agriculture Secretary Francisco Tiu Laurel Jr. earlier projected that retail rice prices would start to soften next month with the full impact of the lower tariff rate being felt by January.
BOC data showed that the average landed cost of rice in August stood at P33.97 per kilogram, the lowest in the past nine months.
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