In response to the ongoing threat of dry weather and economic uncertainties, Philippine President Ferdinand Marcos Jr. has approved the extension of reduced tariffs on essential food items, including rice, until the end of 2024. The decision aims to maintain price stability amidst concerns about potential challenges, such as the El Nino dry weather phenomenon and the persistent threat of African Swine Fever.
The modified tariff rates, initially approved in 2021, have already been extended earlier this year due to high inflation rates. The latest extension underscores the government’s commitment to ensuring affordable prices for staple foods like rice, corn, and meat products.
Inflation in the Philippines stood at 4.1% in November, marking a second consecutive month of easing but remaining above the Philippine central bank’s target range of 2%-4% for the year. The average inflation rate for the first 11 months of 2023 was 6.2%, highlighting the ongoing economic challenges faced by the country.
Under the new executive order, the tariff rate for rice will be maintained at 35%, while import levies on corn will remain in the range of 5%-15%. Additionally, import duties on pork products will be retained at levels between 15% and 25%. These measures are intended to support the Filipino population by preventing further price increases on essential food items.
President Marcos emphasized the importance of these tariff extensions as a proactive response to potential disruptions in the food supply chain. The move reflects the government’s commitment to addressing economic concerns and ensuring that citizens have access to affordable and stable food prices during challenging times.
As the Philippines prepares for the potential impact of dry weather and ongoing threats to the agricultural sector, the extension of reduced tariffs on key food items is expected to contribute to the country’s efforts to maintain economic stability and food security.
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