Search
Close this search box.

Rice Tariff Hike and Import Pause Proposed to Protect Local Farmers

Manila: The Department of Agriculture (DA) is advocating for an increase in rice import tariffs and a temporary halt to rice importation to safeguard local farmers and accommodate the upcoming harvest season. President Ferdinand R. Marcos Jr. will deliberate on this proposal with Cabinet officials, as confirmed by Agriculture Secretary Francisco Tiu Laurel Jr. during an interview.

According to Philippines News Agency, the DA has identified an excess of local rice stocks and aims to clear these from warehouses to make way for the new harvest. Laurel emphasized the necessity of selling local rice to free up storage space for rice traders, millers, and the National Food Authority (NFA), particularly with the next harvest season approaching. The declining global rice prices further support the DA’s proposal to increase the current 15 percent import tariff to 25 percent initially, with a potential rise to 35 percent after three months. This adjustment could lead to a retail price increase of PHP1 to PHP1.50 per kilo.

Additionally, the DA is proposing amendments to the Rice Tariffication Law (RTL) to gain more control over the volume of imported rice entering the country. Laurel highlighted the importance of regulating import quantities to protect the local rice industry from being adversely affected by excessive imports. The proposal emerges in response to stable local rice stocks and a decline in local rice sales, attributed to a surge in imports during the first half of the year.

In Manila, DA spokesperson Assistant Secretary Arnel de Mesa remarked that the influx of rice imports should not coincide with local harvests, as this could lower farmgate prices. De Mesa stressed the significance of reducing import arrivals during harvest time to ensure the welfare of farmers. The early rice harvest is expected by mid-August, with the peak occurring from September to October, making the timing of import adjustments crucial.

The DA noted that the current volume of rice imports surpasses 500,000 metric tons monthly, indicating an oversupply. As of July 31, the Bureau of Plant Industry recorded that total imported rice volume had exceeded 2.4 million metric tons. De Mesa highlighted the importance of aligning import volumes with domestic production to support local farmers and stabilize market conditions.