Tiu Laurel: TRO on tariff to cause rice shortage

MANILA, Philippines — Agriculture Secretary Francisco Tiu Laurel Jr. warned of a rice shortage if the Supreme Court issues a 60-day temporary restraining order (TRO) against Executive Order 62, which reduces tariff on rice.

At a press conference yesterday, Tiu Laurel said the 15 percent tariff on imported grains would bring down the retail price of the staple.

“If a TRO is issued, no (importers) will import. They will just use their remaining stocks. The buffer stock (of rice) will be sold out by the time the TRO is lifted. We will have a bigger problem,” he  pointed out.

Several farmers’ groups vowed to file a petition before the high tribunal to stop the implementation of EO 62 that allows a 15 percent tariff on imported rice, down from the current 35 percent, until 2028.

“Hopefully, no TRO is issued. If not, the buffer stock of the industry will be affected,” Tiu Laurel said.

Samahang Industriya ng Agrikultura (SINAG) legal counsel Virgie Suarez has maintained that the National Economic and Development Authority (NEDA) and the Tariff Commission failed to conduct consultations among the affected farmers’ groups. This failure, they said, would become the basis for the filing of an injunction.

But Tiu Laurel countered, saying “the TRO will only hurt us. It was already decided. Once a TRO is filed and assuming a 60-day (TRO) will be granted, the retail prices of rice will not go down. The retail price of rice will really result in cheaper rice once the tariff is brought down to 15 percent.”

This early, he said, traders are panicking to unload their rice stocks amid the expected lower price of imported grains once the 15 percent tariff becomes effective.

“I got information that (traders) are panicking. Those who have many stocks are starting to unload. If the TRO is granted, they will again start to hoard their stocks. It will hurt the consumers more,” Tiu Laurel said.

According to Tiu Laurel, initially, he was not also consulted on the decision of the NEDA board to approve the 15 percent tariff on rice.

Tiu Laurel said that he supports the tariff reduction on imported rice but not until 2028.

“I think one year is enough and the President has agreed with the recommendation of the industry that there will be an evaluation every four months. I think it is fair so that if we see the need to increase (the tariff), we can increase it. We should also be careful as it might send a mixed message to the international community that we change our decision often and that there is no stability,” Tiu Laurel said.