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MANILA, Philippines — The Department of Economy, Planning and Development (DepDev) downplayed inflation concerns over President Marcos’ 60-day suspension of rice imports, citing sufficient domestic supply, declining global prices and a strong harvest outlook.

DepDev Secretary Arsenio Balisacan said the suspension comes at a time when rice inventories remain sufficient and global prices are on a downtrend.

“We don’t expect (the suspension) to cause inflation,” Balisacan said, adding that “the availability of rice is close to normal. Even if we don’t import in September and October, supply should remain adequate because of the imports already in the pipeline and expectations of a good harvest.”

The 60-day halt on rice imports will take effect on Sept. 1, invoking the President’s authority under the Rice Tariffication Law to temporarily restrict foreign purchases to stabilize domestic prices.

Balisacan said that many rice shipments ordered before the announcement are still arriving. “With the imports underway, the estimates are that rice availability remains stable for more than 40 days, even without new imports during the two-month pause,” he said.

He also that the Department of Agriculture expects a strong harvest during the September–October season, aided by minimal typhoon damage this year.

Still, Balisacan urged vigilance, warning that “world prices can change suddenly” and policies must remain flexible to adapt to shifts in the global and domestic market.

In a statement on Tuesday, the Department of Agriculture described the President’s decision to halt rice imports and defer a tariff hike as a “measured response” to current challenges faced by Filipino farmers.

Agriculture Secretary Francisco Tiu Laurel Jr. said the 60-day import freeze is “calibrated” and reversible, allowing the government to quickly respond to market changes.

“We are walking a tightrope here,” Tiu Laurel said. “The stakes are high for both our farmers and the Filipino people, so it’s crucial that we strike the right balance.”

Under Republic Act 12078, the President is empowered to suspend or prohibit the importation of rice for a limited period when there is an “excessive” supply of imported or locally produced rice that results in “extraordinary” drop in local prices.

Palay prices have fallen year-on-year due to a glut in stocks caused by high carryover stocks coupled by significant rice imports. The decline in world rice prices also caused the landed cost of imported stocks to fall further, negatively influencing the price of local palay.

The average farmgate price of palay in June declined by almost 32 percent year-on-year to P16.99 per kilo from P24.93 per kilo, based on Philippine Statistics Authority data.

Some industry groups have claimed that palay prices have declined to as low as P8 per kilo in certain areas of the country.

In a related development, House Minority Leader Marcelino Libanan (4Ps party-list) said it would be in the best interest of the Marcos administration to “increase” funding for programs that support local farmers in the 2026 national budget, following the two-month rice importation ban.

“It (rice importation temporary ban) must be followed by sustained and strategic government support to build up domestic rice production,” Libanan said, adding that “we need to invest heavily in irrigation, farm mechanization, post-harvest facilities, access to affordable credit, and fair farmgate pricing mechanisms.”

The former eastern Visayas lawmaker nevertheless lauded Marcos’ decision, which he said is a “welcome and timely relief for our local rice farmers, who are currently struggling with falling palay prices due to the influx of cheap imports.”

“This decisive action puts the welfare of Filipino farmers front and center. Many are now being forced to sell their palay at a loss – some for as low as P8 to P10 per kilo, well below their production cost,” he said.

However, Libanan stressed that the import suspension “must not be a standalone measure.”

The Minority Leader underscored that the P6.7-trillion General Appropriations Bill (GAB) for 2026 – expected to be submitted by Malacañang to Congress within the month – must reflect this commitment.

“As House Minority Leader and a steadfast advocate of our agricultural sector, we urge the government to seize this opportunity to craft a long-term strategy that puts Filipino farmers at the core of our national food security agenda,” Libanan said. — Delon Porcalla

Source : msn