Department of Agriculture (DA) Secretary Francisco Tiu Laurel hinted at the possibility of reverting the rice import tariff to its original rates, if rice prices continue to fall.
Agriculture Secretary Francisco Tiu Laurel said during the Kapihan Forum series hosted by the Philippine Chamber of Commerce and Industry (PCCI) said the P42 to P45 per kilogram level would be the “right range” to consider bringing back the rice tariffs.
“If [rice] prices will go down to P45/kg, that’s already a significant drop. I guess, P42 to P45 will be the right range to consider bringing back rice tariff to the original rates,” he said.
Rice prices are now hovering around P52 to P55 per kilogram, with regular milled rice at P52 and well-milled at P55.
Laurel said while the government is committed to bringing down the price of the staple, the government remains committed to supporting Filipino farmers.
“We’re not saying we will abandon farmers. The President promised to give support whatever the farmers need for the benefit of consumers,” he said.
He highlighted existing programs that provide additional income, such as the distribution of two sacks of fertilizer per hectare of rice fields and other farm inputs and machinery.
Fertilizer procurement as a subsidy for farmers will cost the DA P6 billion annually for every 2 to 4 sacks per hectare of fertilizer support to farmers and P16 billion of 6 to 8 sacks. The initiative will start in 2026.
Tiu Laurel said rice imports may reach 3.9 million metric tons (MT) this year as production losses to El Niño were minimal compared to earlier estimates.
Domestic palay production is estimated to reach 20 million MT, or about 12.6 million MT rice equivalent.
Tiu Laurel reassured the public that while the DA has only four days of rice inventory, rice stocks held by the private sector could last about 56 to 58 days, sufficient to tide the country over the lean months.
He said the decision on rice tariffs ultimately lies with the Tariff Commission, which is mandated to review Executive Order 62 signed by the President on June 20, 2024.
The EO officially authorizes the rice tariff cut to 15 percent from 35 percent and the reduction in tariff for select products.
