AGRICULTURAL groups on Sunday kept up their criticism of the government's move to lower rice import tariffs, claiming that it would only benefit importers and lower farmers' incomes.

"Ultimately, tariff reduction will put pressure to lower the farmgate price of palay to P17 per kilo in order to achieve the low price of rice," Samahang Industriya ng Agrikultura (Sinag) Chairman Rosendo So said in a briefing.

The group added its voice to critics of the National Economic and Development Authority (NEDA) Board's decision to slash duties on imported rice to 15 percent, from an already previously lowered 35 percent, to "drive down" rice retail prices.

So said the NEDA's claim that the move would lead to rice being sold at P29 per kilo — from current market prices of up to P60 — was "wishful thinking."

With the current price of imported rice at $635 per metric ton, this would mean a retail price of P52 per kilo after adding traders' share of P4.00 to P6.00, he added.

"Tariff reduction will harm local producers and everyone in the rice industry, including lost revenues from government, but on the other hand ensures the steady profit of the pampered importers" So continued.

It claimed that progress had already been made to lower rice prices after Agriculture Secretary Francisco Tiu Laurel Jr. and local millers and traders agreed to buy palay at a floor price of P25 per kilo, to be sold by the government between P35 to P40 per kilo.

Dealings with the Department of Agriculture were already productive and positive, So said, so there was no reason for the NEDA's policy move.

The group also reiterated a demand that NEDA chief Arsenio Balisacan resign, claiming that he had failed to advocate for farmers and consumers. They also said that the tariff cuts were made without proper consultation and adherence to legal procedures.

The Federation of Free Farmers (FFF), for its part, said the tariff cut could reduce farmers' by up to P86 billion annually.

It added that the new tariffs would reduce tariff collections by more than half to P20.88 billion.

Import costs, meanwhile, were estimated to drop by about P7 per kilo and could lead to palay prices dropping to P4.32 per kilo.

"It remains to be seen whether the reduction in rice import costs due to the lower tariff will be passed on in part or in full to consumers," FFF Chairman Leonardo Montemayor said.

"However, the impact on palay prices will be more direct and immediate because imports and domestic rice compete with each other in the wholesale, and not retail, markets," he added.