Manila: The Department of Agriculture (DA) is pushing for a modest increase in tariffs on imported rice to at least 25 percent from the current 15 percent, which will support local farmers. This is part of the Marcos administration's target measure to gradually revert to the original 35 percent tariff on imported rice, a year after the implementation of reduced duties to help lower soaring retail rice prices.
According to Philippines News Agency, DA Assistant Secretary and deputy spokesperson Joycel Panlilio said a gradual return to higher tariffs is now being considered to protect local farmers while avoiding shocks in the market. Panlilio emphasized the ongoing discussions with the Department of Economy, Planning, and Development to ensure that the increase in tariffs does not disrupt the market.
Panlilio noted that the gradual reversion would influence both the supply of imported rice and rice retail prices in the country. As of July 29, the prevailing prices of imported premium and well-milled rice in Metro Manila are PHP45 per kg. and PHP46 per kg., and PHP40/kg. for imported regular-milled rice, according to the DA Bantay Presyo. The price of premium imported rice ranges from PHP42 to PHP48/kg.; imported well-milled rice from PHP38 to PHP50/kg.; and imported regular-milled rice from PHP33 to PHP45/kg.
Panlilio added that raising the rice tariff could help boost the farmgate prices of palay (unhusked rice), providing much-needed support to local farmers. She stated that should the higher rice tariff be approved, it would likely result in increased farmgate prices for palay, thereby benefiting farmers.
Earlier, the Samahang Industriya ng Agrikultura (SINAG) reported that the influx of cheaper imported rice, set at PHP23 to PHP25 per kg. landed costs, had adversely affected farmers. This was due to some traders setting an unreasonable palay buying price during the dry harvest season. The group highlighted that the palay buying price had dropped to as low as PHP5 per kg. in Nueva Ecija in early July.
The National Food Authority (NFA) has set higher buying prices than some traders, with rates at PHP17 per kg for fresh and wet palay and up to PHP24 per kg. for clean and dry palay, under the Price Range Scheme (PRICERS).
