60-day rice import suspension unlikely to push up inflation

Socioeconomic planning chief Arsenio Balisacan says they are identifying the best interventions to protect local rice farmers from sharp swings in market prices

MANILA, Philippines – Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said on Thursday, August 7, that the 60-day suspension of rice imports is unlikely to hasten inflation due to lower prices in the world market and an adequate inventory.

Balisacan explained that global rice prices were close to $600 per metric ton when the government slashed rice tariffs to 15% last year. But this has since dropped 30% to around $450 per metric ton.

Farmgate palay prices also dropped around 30% to just P16.99 per kilo in June, according to data from the Philippine Statistics Authority.

Balisacan added that the move is unlikely to trigger faster inflation since the total inventory of rice in the market remains adequate, especially with the upcoming harvest season.

The country’s chief economist said the government is currently identifying long-term solutions to protect local rice farmers from sharp swings in market prices.

President Ferdinand Marcos Jr. on Wednesday, August 6, ordered the suspension of all rice imports beginning September 1 to protect local farmers’ income amid the upcoming harvest season.  – Rappler.com