Rice tariff stays at 15% till November

THE 15% TARIFF on imported rice will remain unchanged at least until November, according to the Department of Economy, Planning, and Development (DEPDev), as the government seeks a “win-win” solution that balances inflation control with protecting local farmers.

“Not in the immediate [term], but most likely by November,” DEPDev Undersecretary for Policy and Planning Rosemarie G. Edillon told a news briefing on Wednesday. “After four months, we will submit the study to the President.”

The lower tariff was introduced through Executive Order (EO) No. 62, which took effect in July 2024 and slashed the import duty on rice to 15% from 35% until 2028. The EO mandates a review every four months to assess its impact.

The announcement comes amid a petition from farmer groups, including the Samahang Industriya ng Agrikultura, to go back to the original 35% duty to shield local producers from the influx of cheaper rice imports.

The Department of Agriculture, meanwhile, said it would recommend a gradual tariff increase during the next harvest season.

Ms. Edillon said they met to discuss the review and petition, and they agreed that the periodic review is meant to report on what has happened, not to make recommendations at this stage.

The lowered tariff appears to be achieving its inflation-control goals. Rice prices dropped by 14.3% in June, improving from the 12.8% decline in May, according to the local statistics agency. It was the sharpest drop since 1995.

Rice supply also appears to be stable. As of June, the country’s rice inventory reached 2.24 million metric tons (MT), 3.5% more than a year earlier. “Most of them are still in the warehouses. And we had the bumper harvest, actually, for the first half,” Ms. Edillon said.

She added that the rice import volume would be capped at 3.5 million MT for the year.

The government is also exploring more measures to support farmers, including enhanced access to the Rice Competitiveness Enhancement Fund, which provides planting assistance.

The DEPDev is also participating in discussions on whether to restore the regulatory powers of the National Food Authority (NFA), which was stripped of many functions following the Rice Tariffication Law.

Speaker Ferdinand Martin G. Romualdez said the House of Representatives is ready to act on a draft bill that seeks to reinstate the NFA’s market functions once it reaches the chamber.

The Agriculture department has said the draft legislation includes provisions for the NFA to manage buffer stocks, regulate rice marketing and set floor prices for rough rice.

“I think at that time, the context was different. So NFA was so much in debt. It was really bleeding, hemorrhaging,” Ms. Edillon said, referring to the agency’s former monopoly on imports. “It was not really fulfilling its mandate… What we need to consider now is how the market has adjusted to the new regime.”

She also acknowledged the challenges in setting floor prices. “It will be very tricky though, operationalizing it and even estimating it. But yes, that’s something that we’re studying as well.” — Aubrey Rose A. Inosante