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Government may raise rice tariffs to 35%

30 September 2025

After import ban

MANILA, Philippines —  The government is reviewing the country’s rice tariffs and may raise these to as much as 35 percent after the current import ban ends, Agriculture Secretary Francisco Tiu Laurel Jr. said yesterday.

Tiu Laurel said the review is being carried out with Finance Secretary Ralph Recto and Special Assistant to the President for Investment and Economic Affairs Frederick Go, following President Marcos’ directive.

“We’re running the numbers now, from 20 percent, 25 percent or 35 percent. Hopefully, we can make a decision before the closure of the ban,” Tiu Laurel told reporters in an interview at the House of Representatives in Quezon City.

The move comes as farmers’ groups press for stronger safeguards against cheap rice imports that have dragged down farmgate palay prices to below P10 per kilogram.

In a petition filed with the Department of Agriculture (DA) yesterday, the Federation of Free Farmers (FFF) and the Magsasaka Party List urged the government to impose provisional safeguard duties under the Safeguard Measures Act.

The two organizations said the 60-day import ban that began in September was not enough to stabilize prices.

“By itself, the import ban will not prop up palay prices significantly because traders anticipate that cheap imports will flood the market again when the ban is lifted in November,” FFF national manager Raul Montemayor said.

He added that raising tariffs is the fastest way to compel traders to pay higher prices to farmers while remaining competitive with imports.

Magsasaka chair Argel Joseph Cabatbat, for his part, said the government’s proposed floor price for palay may not work if market prices remain low because of imports.

“The low prices that rice producers have been receiving for their labor represent not just an economic problem. They threaten the very survival of rice farmers and the long-term security of our entire agricultural sector,” Cabatbat said.

The two groups warned that the country’s 2.5 million rice farmers could lose as much as P43 billion this year due to the surge in imports.

They traced the surge to the government’s tariff cut from 35 percent to 15 percent in July 2024, as well as a 40-percent drop in world rice prices from early 2024 levels.

Under Republic Act 8800 or the Safeguard Measures Act, the DA secretary can impose safeguard duties on rice imports that cause or threaten to cause serious harm to local producers.

Duties can last up to 200 days while the Tariff Commission investigates and issues a final ruling. Importers must also post a bond equivalent to the safeguard duty on top of the current tariff.

Source : msn

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