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PERSISTENT high rice prices despite the reduction in import tariffs may point to anti-competitive conditions in the industry, Socioeconomic Planning Secretary Arsenio M. Balisacan said on Monday.

Balisacan said the rice market did not respond as expected after the government slashed the import tariff, with prices remaining elevated even as global rice prices declined in previous years.

“Essentially, it’s a combination of factors, but one that we could not exclude is the possibility that you have an anti-competitive market in the retail sector,” Balisacan said during the budget hearing of the Department of Economy, Planning, and Development (DepDev) at the Senate.

The government cut the tariff on imported rice from 35 percent to 15 percent under Executive Order 62, which took effect for rice in July 2024.

The lower tariff was subsequently maintained through 2025, with President Marcos issuing EO 105 in November 2025 to keep the 15-percent rate until December 31, 2025.

The order also introduced a mechanism for adjusting the tariff based on movements in international rice prices starting January 2026.

As of September 2026, the tariff remains at 15 percent despite the new mechanism.

Balisacan said the government has asked the Philippine Competition Commission to look into possible competition issues behind the “rigidity” in rice prices, particularly in trading, wholesale, and importation.

Balisacan also pointed to other factors that could be preventing rice prices from adjusting as expected, particularly bottlenecks and market inefficiencies, as well as the government’s trade-policy decisions on imports.

“Also in the way we use trade policy, I think the way we make decisions on importation, I think those quantitative restrictions are affecting the way the market functions, so the market can’t effectively function,” he added.

Rice inflation accelerated to 19.4 percent in August from 17.1 percent in July, according to the Philippine Statistics Authority.

Rice was among the major contributors to the month’s inflation, while its August inflation rate was the highest since July 2024.

Source : businessmirror