DA chief backs gradual tariff hike on rice imports

By Stephanie Sevillano, Philippine News Agency

The tariffs on imported rice were reduced to 15 percent from 35 percent in July 2024 to help tame rice retail prices and slow food inflation in line with the directives of President Ferdinand R. Marcos Jr. (PNA file photo by Robert Oswald P. Alfiler)

MANILA – Almost a year after its implementation, Agriculture Secretary Francisco Tiu Laurel Jr. on Thursday backed the “gradual” hike of tariffs on 5 percent broken imported rice starting late September.

The tariffs on imported rice were reduced to 15 percent from 35 percent in July 2024 to help tame rice retail prices and slow food inflation in line with the directives of President Ferdinand R. Marcos Jr.

In a statement, Tiu Laurel said the “strategic” increase should coincide with the harvest seasons of major global rice exporters.

“To minimize the impact on the local market, we propose timing the tariff hike to coincide with the harvest seasons of our major suppliers, around late September for Vietnam and December for Pakistan,” he said.

Tiu Laurel also underscored the need for a “gradual” approach since a 20-point increase may trigger a market shock.

“A sudden increase could shock not only the local market but also ripple across the global rice trade,” he said.

As of June 11, the prevailing prices of imported premium and well-milled rice in Metro Manila are PHP45 per kg., and PHP40/kg. for imported regular-milled rice, according to the DA Bantay Presyo.

The price of premium imported rice, meanwhile, ranges from PHP44 to PHP50/kg.; imported well-milled rice from PHP38 to PHP48/kg.; and imported regular-milled rice from PHP35 to PHP45/kg.

The prices of premium local rice range from PHP44 to PHP60/kg.; local well-milled rice, PHP38 to PHP52/kg.; and local regular-milled rice, PHP32 to PHP45/kg.; with prevailing prices set at PHP50, PHP45, and PHP40, respectively.

The DA, meanwhile, is set to bring down the maximum suggested retail price (MSRP) for 5 percent broken rice to PHP43/kg. in July to further drag down retail rice prices.