MANILA — Philippine President Ferdinand Marcos Jr. on Tuesday rejected a proposal to reduce tariffs on imported rice as world prices of the grain are expected to go down, his office said in a statement.
Marcos also said the government-imposed ceilings on retail prices for the national staple will remain in effect.
The decision followed a meeting on Tuesday among the country’s economic and agriculture officials, including Marcos, who is also the agriculture secretary.
The finance and economic planning departments earlier proposed a tariff reduction to between zero and 10%, from the current 35%, for rice imports as the government seeks to ease pressure on inflation.
The Philippines is one of the world’s biggest importers of the grain, often buying most of its import requirements from Vietnam.
Marcos said that due to forecasts that world prices for rice would fall, now was “not the right time to lower tariffs”.
“Tariffs are generally lowered when the price is going up.”
Vietnamese and Thai rice export rates declined further from recent highs last week, while India’s curbs on parboiled rice exports brought activity to a standstill for the top exporter as buyers held off for cheaper deals.
Traders, however, said tight supplies and strong demand from other buyers will keep prices from falling further.
To keep rice prices in check following a surge in recent months, Marcos has imposed price ceilings, which he said would remain in effect as long as the government deemed them necessary.
Removing the caps on rice retail prices will be “studied carefully”, he said.
— Reporting by Enrico Dela Cruz, Editing by Louise Heavens and Sharon Singleton