Manila: The 60-day suspension of rice imports and the delay in hiking tariffs are strategic moves designed to safeguard both Filipino farmers and consumers, Agriculture Secretary Francisco Tiu Laurel Jr. announced on Wednesday. This declaration follows President Ferdinand R. Marcos Jr.'s approval of the Department of Agriculture's (DA) request to temporarily halt rice imports from September 1, coinciding with the peak rice harvest season.
According to Philippines News Agency, Agriculture Secretary Tiu Laurel emphasized the importance of a balanced approach to ensure that local palay (unhusked rice) producers receive fair income while keeping retail rice prices affordable 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 stated. Assistant Secretary Arnel de Mesa praised the President for his quick decision, noting its timely benefit for palay farmers during the harvest season.
The country's wet cropping season harvest is anticipated to begin in mid-August, with peak harvesting expected between September and October. De Mesa expressed gratitude for the President's prompt response to the department's recommendation, which was driven by the high rice inventory impacting retail and farmgate prices. As of July 1, the country's total rice stock reached a four-year high of 2.815 million metric tons, according to the Philippine Statistics Authority.
The Philippine Rice Research Institute reported that current farmgate prices for fresh palay range from PHP8.33 to PHP17 per kg, while rumble dry prices are between PHP15 and PHP22 per kg. The temporary import ban is in line with Republic Act 11203, which allows for such measures to protect local farmers when necessary.
In addition to the import suspension, Tiu Laurel explained that the decision to delay the proposed tariff increase from 15 percent to 25 percent is part of the government's measured response to protect Filipino consumers. President Marcos has postponed discussions on tariff hikes for imported rice. Tiu Laurel highlighted the flexibility this strategy offers, stating that if it results in better farmgate prices and incomes for farmers, a tariff hike may become unnecessary.
As of Tuesday, imported rice prices in Metro Manila ranged as follows: premium imported rice from PHP42 to PHP48/kg, well-milled rice from PHP38/kg to PHP50/kg, and regular milled rice from PHP30/kg to PHP45/kg. Local rice prices included premium rice at PHP42/kg to PHP60/kg, well-milled rice at PHP37/kg to PHP52/kg, and regular-milled rice at PHP30/kg to PHP45/kg.
In July 2024, President Marcos issued Executive Order 62, reducing tariffs on imported rice from 35 percent to 15 percent to help control retail prices. Before the tariff cut, premium-grade imported rice in Metro Manila was priced at PHP60 to PHP70 per kg, while other imported varieties ranged from the upper PHP40 to mid-PHP50.
