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THE Department of Agriculture (DA) wants to hike the duties levied on rice imports by June, nearly a year after the tariff cut on the staple grain came into force.

Agriculture Secretary Francisco Tiu Laurel Jr. said he would recommend gradually increasing rice tariffs, raising a caveat that reinstating it immediately would jolt the market.

“Our general direction is we will be recommending a slight increase,” Laurel told reporters partly in Filipino during a press briefing on Monday.

“What I think shouldn’t happen is [for rice tariffs to go] from 15 percent going back to 35 percent in one go—it’s dangerous. That will cause a shock in the market. That is my personal recommendation,” he said.

However, the DA chief noted that the percentage-point increase is yet to be determined.

Thus, Laurel said he and Socioeconomic Planning Secretary Arsenio Balisacan plan to meet with the President to discuss their thoughts on the matter.

“The next review will be in June. So, by June, we will likely make a recommendation,” Laurel said.

Last year, President Marcos Jr. issued Executive Order (EO) 62, slashing rice tariffs to 15 percent from 35 percent until 2028. It took effect in July 2024..

Under EO 62, the tariff scheme is subject to a periodic review every four months from its effectivity.

Recently, an industry group urged the government to revert the duties levied on rice to its original rate of 35 percent for Asean countries and 50 percent for non-Asean countries by repealing EO 62.

Rice MSRP

Meanwhile, Laurel said the cut on the maximum suggested retail price (MSRP) for imported rice to P45 per kilo would be the last adjustment over the next two months due to the slump in farmgate prices of palay.

He explained that this would prevent traders from speculating that the agency would further adjust the MSRP downward, thus allowing farmers to earn more.

“[Farmgate prices] are going down because traders might be afraid to buy at a high or more appropriate price, thinking that [the DA] might lower the MSRP further,” he said.

“That’s why right now, I think it is prudent that we will stop at MSRP P45 [per kilo] for the next two months until the harvest season ends.”

The DA recently announced that it will again cut the MSRP for imported rice to P45 per kilo starting March 31, owing to a steady decline in global quotations of the staple grain.

Source : businessmirror