DOF Usec. Chua Explains the Present Impact of Rice Tariffication

Department of Finance (DOF) Undersecretary Karl Kendrick Chua facilitates the discussion about the present the impact of rice tariffication law during the Stakeholders’ Night that was conducted at Marco Polo, Davao City last September 6,2019.

According to the discussion of Usec. Chua, rice tariffication law has four key provisions. As of March 5, 2019, the law limits National Food Authority to emergency buffer stocking; converts quantitative restriction to tariffs; removes all import and trade licensing; and lastly, tariff revenues earmarked for rice productivity improvement.

The present impact of rice tariffication lowered the prices of rice by Php2-7.oo or 20% reduction.

At present, the impact also of rice tariffication lowers the inflation rate in 2019. Moreover, the inflation in August slowed down by 1.7%  and the law had contributed in easing the prices of rice.

In 2018, the high prices of rice attributed to the spiking inflation due to shortage.

Lastly, Usec. Chua also mentioned that the decreasing food prices enable the wages to increase. ( See the update on daily minimum wages: DAILY MINIMUM WAGES IN 2019 ).

However, the farmers in Nueva Ecija clamors that the current Palay prices were as low as Php 7.00 per kilo. This result in lowering the profts of the rice farmers.

This situation was raised during the stakeholders’ night wherein Usec. Chua enumerates three things that the government will do assist this farmers.

The Php10 Billion collection from the tariffs in importing rice will be used in (1) mechanization; (2) high-yielding seeds; (3) credit assistance that obtain zero interest.

The attendees of the event were mostly from the media team.

One of the goals of the DOF is to educate the media about the works of the government.

Meanwhile, DOF also asked strategies on how to improve their engagement with the netizens. Connecting with the netizens is another way of the government agencies to ensure the access of credible information.

For more details about the event, see full report here: DOF Facilitates Stakeholders’ Night in Davao City