The Department of Agriculture (DA) is recommending an increase in tariffs on imported rice and a temporary suspension of all rice importation to shield local farmers from price shocks and market disruptions, Malacañang said Monday.
Presidential Communications Office (PCO) Secretary Dave Gomez said the DA’s recommendation aims to protect local producers from the impact of declining farmgate prices and the influx of cheap imported rice.
“The Department of Agriculture is recommending an increase in tariff on imported rice and to temporarily halt all importation to protect local farmers,” Gomez said in a statement.
He added that the matter will be discussed by the Cabinet with President Ferdinand Marcos Jr. on the sidelines of his state visit to India.
The Federation of Free Farmers (FFF) welcomed the DA’s proposal, saying the move is long overdue.
FFF national manager Raul Montemayor cited reports that palay prices have plunged to as low as P8 per kilo—a 31 percent drop from last year—resulting in an estimated P54.5 billion loss in farmers’ income in the first half of 2025.
The group attributed the decline to the “uncontrolled entry” of cheap imported rice following Executive Order No. 62, which slashed import tariffs to 15 percent in July 2024, and the rollout of the government’s subsidized P20-per-kilo rice program.
Montemayor also raised concern over reports that a DA-affiliated government corporation imported rice from India despite legal provisions mandating that buffer stocks must be sourced exclusively from local farmers.
He said that while raising tariffs could help stabilize farmgate prices, it would not necessarily lead to higher retail prices if authorities crack down on profiteering. He added that trading margins have risen from P13 to over P20 per kilo despite declining global rice prices.
To expedite the tariff increase, the FFF proposed invoking the Safeguard Measures Act (Republic Act No. 8800), which authorizes the DA to impose provisional safeguard duties when surging imports harm local producers.
The group warned that amending tariffs through an Executive Order would take longer, as it requires consultations and can only be issued when Congress is in recess, likely by October. The FFF also acknowledged that while the Rice Tariffication Law now allows the President to temporarily ban imports, doing so may raise concerns at the World Trade Organization (WTO), which opposes quantitative import restrictions.
Meanwhile, Senators Risa Hontiveros and Francis Pangilinan filed a joint resolution seeking to revoke the President’s authority to adjust rice import tariffs and restore them to previous levels. The resolution seeks to repeal EO 62, which cut tariffs from 35 to 15 percent and triggered a surge in rice imports. The senators said the flood of cheap grain has devastated Filipino farmers, whose palay prices fell from P24.90 per kilo in 2024 to just P16.90 in June 2025—well below average production costs.
Invoking Section 1608(f) of the Customs Modernization and Tariff Act, the resolution would restore the 35 percent tariff on both in-quota and out-quota rice imports. “The plight of Filipino farmers is urgent and demands decisive legislative action to ensure they receive a fair return for their produce,” the resolution stated.
It also directs congressional committees to immediately convene and assess the state of the rice industry and formulate legislation establishing sustainable and protective import tariffs.
The resolution will take effect 15 days after its publication in the Official Gazette or a newspaper of general circulation.
© Copyright 2025 The SSResource Media.
All rights reserved.