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A MORE gradual and flexible tariff adjustment on rice shall be adopted starting January 1, 2026 depending on the change in international prices, according to the Economy and Development (ED) Council chaired by President Ferdinand R. Marcos Jr., the Department of Economy, Planning, and Development (DEPDev) announced Tuesday night.

This, the Council said, after it approved the recommendation of the Tariff and Related Matters Committee (TRMC) to maintain the tariff rate on rice imports at 15 percent until December 31,2025, for both in-quota and out-quota imports.

“Starting January 1,2026, a more gradual and flexible tariff adjustment shall be adopted, with adjustments by 5 percentage points per 5 percent change in international prices, subject to a minimum rate of 15 percent and a maximum rate of 35 percent,” the DEPDev statement read.

The socioeconomic planning body said the TRMC’s recommendation is part of a “broader” government strategy to ensure “stable” rice prices and protect both farmers and consumers, while safeguarding macroeconomic stability.

For his part, DEPDev Arsenio M. Balisacan underscored that the recent decision made by the President—upon the Department of Agriculture’s (DA) recommendation—to extend the rice import ban until the end of December “renders the rice tariffs redundant,” adding, “they no longer affect local market prices.”

In an interview with reporters on Monday, Balisacan said DA’s assessment is that there is “good enough supply” for the rest of the year.

“Our data also shows that there is good enough supply to prevent increases in retail prices,” the DEPDev secretary also noted.

He pointed out that the overall goal is to protect farm gate prices from further falling.

“Because in the past almost a year now, farm gate prices have dropped by more than 30 percent. It is quite sharp. I’ve seen that kind of decline in recent years, many years. So it’s a concern that our poorest of the poor which is in the rural communities are hitting such a …” Balisacan noted.

He emphasized the importance of using a “combination of tools to achieve both the farm problem and the consumer problem” to make food prices affordable to consumers while at the same time preventing any upward pressure on inflation and hurting the economy in the longer term.

“So those things will require different tools and the import ban is very temporary,” the DEPDev chief said, adding, “We are setting in place a more permanent ecosystem for the rice sector and the food sector in general.”

Apart from the rice tariff, the ED Council approved other key programs on Education, Water Access, and Social Protection.

Among the approved measures is the Program for Learning Upgrading and School Development (PLUS-D) of the Department of Education (DepEd), with a total cost of P38.27 billion.

Proposed for official development assistance (ODA) loan financing from the World Bank, PLUS-D seeks to enhance learning outcomes and strengthen education management and delivery systems nationwide, DEPDev said.

The agency said PLUS-D, which is scheduled for implementation from 2026 to 2032, will introduce “system-level” interventions, provide targeted support to schools, and establish monitoring and evaluation mechanisms.

The program aims to improve literacy and numeracy among Kindergarten to Grade 6 learners, and boost reading and math proficiency for students in Grades 7 to 10.

Balisacan said this project ensures that education reforms reach every Filipino learner, especially those in disadvantaged areas.

“By strengthening schools and supporting teachers, we hope to create better learning environments that enable every child to achieve their full potential,” Balisacan noted.

The Council likewise approved the Accelerating Water Supply and Sanitation for the Poor and Lagging Areas (AWSPSA) project, with a total cost of P14.98 billion.

Also proposed for ODA loan financing from the World Bank, AWSPSA aims to improve access to safe water supply and sanitation services in underserved communities, addressing public health and local development challenges, DEPDev noted.

Source : businessmirror