World’s top rice importer moves to contain inflation with ‘double-edged sword’ A panel led by Philippine President Ferdinand Marcos Jr. on June 4 announced a plan to slash the tariff on imported rice. (Photo by Ezra Acayan/Getty Images) RAMON ROYANDOYAN, Nikkei staff writer MANILA — The Philippines, the world’s top rice importer, is moving to cut tariffs on the staple food from 35% to 15% through 2028 to ease the country’s inflation woes.
But analysts worry the move could benefit foreign producers such as Vietnam and leave Filipino farmers struggling to compete. The decision was announced Tuesday, following a meeting of an inter-agency panel headed by President Ferdinand Marcos Jr. The move will lower prices for rice to “make it more affordable,” Arsenio Balisacan, head of the National Economic and Development Authority, said in a statement.
Rice makes up 9% of the Philippine consumer price index, but the statement said the staple accounted for more than half the headline inflation rate over the past three months. Prices rose for the third straight month in April, climbing 3.8% on the year.
“Reducing rice tariffs is expected to bring down rice prices for consumers, while supporting domestic production through tariff cover and increased budgetary support to improve agricultural productivity, especially as global rice prices remain elevated,” said Balisacan. Balisacan said the Marcos administration is attempting to hold down prices for poor Filipinos by cutt.