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Farmer group says traders pocketed P5 billion in savings from tariff cut

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Jervis Manahan

ABS-CBN News

<p>MANILA - The Federation of Free Farmers said it has &quot;reason to believe&quot; that traders have been pocketing P5 billion worth of savings from the tariff cut. </p><p>The group said instead of pulling rice prices down due to the massive cut in tariffs, traders have been keeping the savings as extra profit.</p><p>Executive Order 62, which took effect in early July, slashed tariffs on imported rice from 35 percent to 15 percent. </p><p>&quot;The FFF calculated that rice importers decreased their tariff payments by P6.70 per kilo, assuming a landed cost of $600 per ton and an exchange rate of P56 per dollar. Total tariff savings from the over 800,000 tons that arrived between July and mid-September amounted to over P5 billion,&quot; their statement read. </p><div><a href="https://news.abs-cbn.com/business/2024/9/25/house-ratifies-bicam-report-on-proposed-amendments-to-rtl-2249" id="isPasted">House ratifies bicam report on proposed amendments to RTL </a> </div><p>Advocates pushing for EO 62 back then promised a reduction of rice prices by up to P7 per kilo. However, FFF said based on PSA data, rice prices only decreased by 40 centavos during the same period. </p><p>&quot;The fact that retail prices hardly moved means that importers, wholesalers and retailers pocketed most of the P5 billion in savings. They, and not the consumers, have been the real beneficiaries of the tariff cuts,&quot; said FFF National Manager Raul Montemayor. </p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/2SQmoOntYKQ?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><p>But the Department of Agriculture does not seem to be convinced with this position. </p><p>&quot;Well, everyone&#x27;s entitled to their own opinion. But for me, hindi naman siguro,&quot; said Agriculture Secretary Francisco Tiu Laurel Jr. </p><p>(Well, everyone&#x27;s entitled to their own opinion. But I don&#x27;t think this is the case.) </p><div><a href="https://news.abs-cbn.com/business/2024/5/7/agri-group-wants-nfa-excluded-from-any-rtl-amendments-1741" id="isPasted">Agri group wants NFA excluded from any RTL amendments </a> </div><p>Tiu Laurel reiterated that old stock bought with higher prices are yet to be fully consumed and retailers are yet to replenish their stores with cheaper rice. </p><p>&quot;Itong September ang nako-consume natin ngayon is ang bigas or palay nung nabili noong January to June ng napakamahal ng local traders or local buyers. Of course, parang nag-benefit naman dyan yung mga farmers, kasi nabili na ng P29.30 per kilo na palay,&quot; Tiu Laurel added. </p><p>(This September, we are consuming rice bought from January to June which were acquired in higher prices. Local farmers benefitted from this anyway.) </p><p>Farmers say palay prices have started to drop to as low as P14 per kilo due to big volume in imports. </p><p>Various groups have opposed the EO62, even filing petitions for a TRO at the Supreme Court.</p>

<p>The Federation of Free Farmers said they have reason to believe that traders have been pocketing P5 billion worth of savings from the tariff cut.</p>

The Federation of Free Farmers said they have reason to believe that traders have been pocketing P5 billion worth of savings from the tariff cut.