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The Department of Agriculture (DA) is in support of a recommendation from a House of Representatives panel to revert the rice tariff rate from 15 percent to 35 percent—on the condition that this will be implemented gradually.

During the final hearing of the House quinta committee on Wednesday, June 11, among its recommendations is to raise the tariff rate to its previous level, citing the need to safeguard local farmers from the entry of rice imports.

Agriculture Secretary Francisco Tiu Laurel said the agency is open to such a proposal but noted that the increase should be done in phases to minimize its impact on the rice market.

“Our suggestion is a gradual increase...eventually returning to the 35-percent duty,” he said during the hearing.

Laurel warned that an immediate hike in the rice import duty could disrupt the global rice trade, potentially driving up prices of the staple.

As the world’s largest rice importer, the Philippines plays a crucial role in shaping global rice prices over its demand and supply, and even policy shifts.

The United States Department of Agriculture (USDA) earlier projected that the country’s rice imports will rise to 5.5 million metric tons (MT) in the upcoming market year, exceeding the record-high of 4.8 million MT in 2024.

Laurel said he has since recommended to the Tariff Commission, the agency tasked to recommend and develop tariff policies, to ensure that future increases in the rice tariffs are implemented on a gradual basis.

Last year, President Ferdinand “Bongbong” Marcos Jr. signed Executive Order (EO) No. 62 to slash rice tariffs from 35 percent to 15 percent in a move to tame rice prices.

Under EO 62, the rate is subject to review every four months.

Cutting the rice tariff, alongside initiatives such as the maximum suggested retail price (MSRP), has seen prices of the commodity go down, contributing to the slowdown of inflation.

Agriculture groups, however, pointed out that lowering the tariff rate threatens the livelihood of farmers due to the influx of rice imports, with the government also losing billions of pesos in foregone revenues.

Last month, Laurel said the government would likely push for the retention of the 15-percent tariff rate in its scheduled review this month to avoid potential price increases.

He explained that raising the duty should coincide with the harvest seasons of the country’s major suppliers.

Vietnam, the largest supplier of rice to the Philippines, will have its harvest season around late September. Pakistan, another top exporter, is scheduled to harvest in December.

Source : mb