DA eyes rice tariff adjustment as prices fluctuate

Agriculture Secretary Francisco Tiu Laurel Jr. has indicated that he would recommend increasing tariffs on imported rice if retail prices rise to between P42 and P45 per kilogram.

“It can be from 15 [percent] to 20 or 15 to 25 or full 35 depending on the situation and after consultations with all stakeholders,” he stated.

Executive Order (EO) 62, which reduced rice tariffs to 15 percent until 2028, mandates a periodic review of the tariff scheme every four months, beginning in 2024. 

The National Economic and Development Authority (NEDA) is set to conduct another review of the comprehensive and specific Most Favored Nation (MFN) tariff rates under EO 62 by March.

Meanwhile, Laurel announced that local government units (LGUs) may begin selling rice from the National Food Authority (NFA) as early as next week, with over 50 LGUs expressing interest in distributing the agency’s aging buffer stocks.

“They have signified their intent to sell, but some documentation needs to be fulfilled,” he said.

Once the necessary agreements between the NFA and Food Terminal Inc. (FTI) are finalized, rice sales under the NFA’s emergency program will be rolled out through LGUs. “Once documentations are completed between NFA and the FTI, [and] FTI to LGUs by next week, we can roll out the selling program for cheap rice under the rice emergency program of NFA,” he added.

The Department of Agriculture (DA) recently declared a food security emergency for rice, allowing the release of buffer stocks held by the NFA. These stocks will be sold at P33 per kilogram through the FTI to LGUs, Kadiwa stores, and government entities, with consumers able to purchase them at P35 per kilogram.

The NFA plans to distribute 150,000 metric tons (MT) of rice over the next six months—half of its current 300,000 MT buffer stock—to help stabilize market prices.

NFA Administrator Larry Lacson explained that the allocation will be based on available stocks in warehouses near LGUs and areas experiencing the highest rice prices.

“First consideration is the stocks in the NFA warehouse na malapit sa kanila or nakakasakop sa kanila. So, kung ano yung volume na pwede dun, paghahati-hatiin namin sila,” Lacson said.

He added that if a particular region covers 10 LGUs, priority would be given to the areas with the highest demand.

The latest DA price monitoring shows that retail prices of imported rice in Metro Manila range from P44 to P45 per kilogram for well-milled varieties and P38 to P46 per kilogram for regular-milled rice. 

Local well-milled rice is priced between P40 and P53 per kilogram, while regular-milled rice ranges from P38 to P45 per kilogram.