The 60-day rice importation ban and the deferred decision on tariff hike are calibrated moves to protect both Filipino farmers and consumers, Agriculture Secretary Francisco Tiu Laurel Jr. said on Wednesday.
The agriculture chief made the remark following President Ferdinand R. Marcos Jr.’s decision to grant the agency’s request for a temporary suspension of rice importation, beginning Sept. 1, in time for the peak harvest season.
In a statement, the agriculture chief emphasized the need for a “balanced” measure to ensure that local palay (unhusked rice) producers secure a reasonable income while maintaining the affordability of retail rice in local markets for consumers.
“We are walking a tightrope here. The stakes are high for both our farmers and the Filipino people, so we must strike the right balance,” Tiu Laurel said.
Agriculture spokesperson Assistant Secretary Arnel de Mesa, meanwhile, lauded the President for his swift decision.
“It’s a welcome reprieve para sa ating magsasaka ng palay, lalo na timing kasi iyon (for our palay farmers because that’s timely) for the harvest season,” he said.
The onset of the country’s harvest for the wet cropping season is expected to begin by mid-August, with peak harvesting projected between September and October.
“Nagpapasalamat tayo sa maagap na pagtugon ng ating Pangulo sa rekomendasyon ng kagawaran (We thank the President for his immediate response to the recommendation of the department),” de Mesa added.
The DA said its recommendation to suspend rice imports was prompted by the country’s high rice inventory, which is affecting retail prices and, eventually, the farmgate prices of palay.
As of July 1, the country’s total rice stock reached a four-year high of 2.815 million metric tons (MT), based on data from the Philippine Statistics Authority (PSA).
This includes over 1.3 million MT in commercial stocks, 1 million MT in households, and 447,575 MT with the National Food Authority (NFA).
According to the Philippine Rice Research Institute (PhilRice), average farmgate prices of fresh palay currently range from PHP8.33 to PHP17 per kg. while the price of rumble dry fetches between PHP15 to PHP22 per kg., across the regions.
Under Republic Act 11203 or the Rice Tariffication Law, a temporary import ban may be imposed to protect local farmers when necessary.
Holding off tariff hike
Tiu Laurel, meanwhile, said the “holding off” of the proposed tariff hike to 25 percent from the current 15 percent is also part of the “measured response” of the government alongside the two-month import halt to protect Filipino consumers.
This came after the President opted to delay discussions on tariff increases for imported rice.
“If this strategy leads to higher farmgate prices and better income for our farmers, we may no longer need to raise the tariff,” Tiu Laurel said.
“It gives us the flexibility to act fast to protect both our farmers and our consumers. A premature tariff hike, on the other hand, could backfire and would take much longer to undo.”
As of Tuesday, the amount of premium imported rice in Metro Manila ranges from PHP42 to PHP48/kg, according to the DA Bantay Presyo (price watch).
Prices of imported well-milled rice, meanwhile, range between PHP38/kg and PHP50/kg; and imported regular milled rice from PHP30/kg to PHP45/kg.
Premium local rice is priced between PHP42/kg and PHP60/kg; local well-milled rice, PHP37/kg to PHP52/kg; and local regular-milled rice, PHP30/kg to PHP45/kg.
In July 2024, Marcos issued Executive Order 62, which reduced the tariffs on imported rice to 15 percent from 35 percent to help tame rice retail prices.
Before the tariff cut took effect in July 2024, premium-grade imported rice reached PHP60 to PHP70 per kg. in Metro Manila, while other imported varieties were priced in the upper PHP40 to mid-PHP50. (PNA)
