Balisacan is pushing for the removal of the quota system, noting the QR puts the burden of rice demand and supply on the government, while limiting market forces.
The Neda chief had partly blamed high rice prices, partly due to the prevailing QR regime, for the higher poverty incidence registered in the first half of last year. The commodity accounts for a fifth of low income families’ budgets.
Since the government imposes a quota on rice imports, domestic prices are vulnerable to shocks resulting from meager supply.
The extended QR slaps a 35-percent duty on imported rice under a minimum access volume (MAV) of 805,200 metric tons. Importation outside of the MAV limit are levied a higher tariff of 50 percent.
The Philippines’ most favored nation or MFN rate—the additional tariff imposed when imported outside of Asean—on the commodity remains at about 40 percent.
Balisacan is pushing for the removal of the quota system, noting the QR puts the burden of rice demand and supply on the government, while limiting market forces.The Neda chief had partly blamed high rice prices, partly due to the prevailing QR regime, for the higher poverty incidence registered in the first half of last year. The commodity accounts for a fifth of low income families’ budgets.Since the government imposes a quota on rice imports, domestic prices are vulnerable to shocks resulting from meager supply.The extended QR slaps a 35-percent duty on imported rice under a minimum access volume (MAV) of 805,200 metric tons. Importation outside of the MAV limit are levied a higher tariff of 50 percent.The Philippines’ most favored nation or MFN rate—the additional tariff imposed when imported outside of Asean—on the commodity remains at about 40 percent.
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