Importers delaying rice shipments – FFF

THE Federation of Free Farmers (FFF) is claiming that importers are delaying rice shipments to the Philippines due to issues on the legality of Executive Order (EO) 62.

"Imports were actually arriving in record volumes before EO 62 was signed last June 20," Raul Montemayor, FFF national manager, said on Friday.

Citing data from the Bureau of Customs, the FFF said that rice shipments to the country between January and May 2024 averaged 431,085 metric tons (MT) per month.

Montemayor said that this was higher by 33 percent compared to the volume during the same period in 2023, despite tariffs set at 35 percent and international prices still relatively high.

In June, meanwhile, arrivals dipped to 155,168 MT. The group attributed the decline to importers canceling orders or withholding new purchases in anticipation of the decrease in tariffs to 15 percent.

"Importers are now delaying further shipments due to the uncertainty regarding the legality of EO 62," Montemayor said.

Last June, the National Economic and Development Authority (NEDA) slashed tariffs on imported rice to 15 percent from 35 percent to "drive down" the retail prices in the country.

The FFF also rejected claims that the opposition of farmers to EO 62 would result in a supply shortage.

Last July 4, the FFF, together with other farmers organizations, filed a petition before the Supreme Court seeking a temporary restraining order against the implementation of EO 62.

"We cannot be faulted for questioning an EO that is legally defective and will bring serious harm to farmers. This would not have happened if NEDA followed the law," said Montemayor. The order is set to take effect on July 7 after its publication on June 22.

The FFF added that the tariff cut would seriously harm the country's farmers and questioned its effectiveness in bringing down rice prices.

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