Longer perks keep prices down
Under the new EO, tariff rates for pork will remain at 15 percent under quota and 25 percent outside the quota scheme
PHOTOGRAPH BY ANALY LABOR FOR THE DAILY TRIBUNE@tribunephl_ana
Daily TribuneUnder the new EO, tariff rates for pork will remain at 15 percent under quota and 25 percent outside the quota scheme
PHOTOGRAPH BY ANALY LABOR FOR THE DAILY TRIBUNE@tribunephl_ana
Preferential tariffs that the country provides specific farm imports under the Most Favored Nation, or MFN, scheme will help keep food costs stable, according to the National Economic and Development Authority, or NEDA, on Thursday.
In a statement, Socioeconomic Planning Secretary Arsenio Balisacan said the government had stretched the tariffs scheme on essential agricultural goods until the end of next year to ensure basic commodities are affordable.
Balisacan said lowering tariffs helped bring down the price of corn and allow traders more rice sources.
Executive Order 50, which was issued on 22 December 2023, extends the reduced MFN rates on key agricultural goods until 31 December 2024.
Under the new EO, tariff rates for pork will remain at 15 percent under quota and 25 percent outside the quota scheme; while corn will be at five percent in-quota and 15 percent out-quota; and rice at 35 percent.
Socioeconomic Planning Secretary Arsenio Balisacan underscored the importance of diversifying market sources to ensure sufficient and affordable food supply.
According to the NEDA secretary, this will help reduce the risks and alleviate the inflationary pressures caused by the onset of El Niño, the worsening effects of the African swine fever and external pressures such as geopolitical tensions and export bans imposed by some countries.
While the swine flu, production shortfall in corn, and estimated supply deficit in rice drove price increases in these commodities for this year, additional meat importation played a crucial role in reducing meat inflation to -1.2 percent in September 2023, down from 21 percent in 2021.
In addition, the reduction on tariff rates had pulled down corn inflation and broadened market sources for rice, mitigating the impact of elevated inflation in September of this year.
Balisacan also emphasized the importance of complementing the trade scheme with crucial strategies and programs to enhance local food production and boost productivity of farmers.
These crucial strategies include sustained investments in irrigation, flood control, supply chain logistics and climate change adaptation.
"Short-term and long-term interventions need to work together to protect the purchasing power of Filipino households and boost the productivity and income of local producers. Doing so will ensure equitable and sustainable development for the country," the government's chief economic planner stated.
Meat prices reasonable
More imports also helped bring down the prices of meat. Balisacan talked about how important it is to start programs that will help farms make more food and be more productive.
Long-term investments in irrigation, flood control, supply chain logistics, and adapting to climate change are some of these important changes.
"Short-term and long-term interventions need to work together to protect the purchasing power of Filipino households and boost the productivity and income of local producers," Balisacan said.
"Doing so will ensure equitable and sustainable development for the country," he added.