DA backs gradual rice tariff hike starting September

Agriculture Secretary Francisco Tiu Laurel Jr. on Thursday expressed support for a gradual increase in tariffs on 5% broken imported rice, nearly a year after the rates were slashed to address inflation concerns.

In July 2024, the government reduced rice import tariffs from 35% to 15% to stabilize prices and slow down food inflation, following President Ferdinand R. Marcos Jr.’s directive.

Tiu Laurel now advocates for a “strategic” adjustment of the tariff rate that aligns with the harvest seasons of major rice-exporting countries.

“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.

He also cautioned against abrupt adjustments, pointing out that a full 20-point hike could destabilize the market.

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

Based on DA Bantay Presyo data as of June 11, imported premium rice in Metro Manila is priced at P45/kg, while imported well-milled and regular-milled varieties are at P40/kg and P35-P45/kg, respectively.

Local rice prices range from P32 to P60/kg depending on the type and quality, with prevailing prices for premium, well-milled, and regular-milled rice at P50, P45, and P40/kg.

To help further ease rice prices, the Department of Agriculture is preparing to reduce the maximum suggested retail price (MSRP) for 5% broken rice to P43/kg starting July.