Farmers group asks government to restore 35% rice import tariff

The Federation of Free Farmers (FFF) has renewed its call for the government to restore the 35-percent tariff on rice imports to help address falling prices of palay.

The group said a tariff cut to 15 percent in June 2024, enacted under Executive Order 62 to temper retail rice prices, coincided with a global price slump. This flooded the local market and drove palay prices down to as low as P8 per kilogram during the April-June 2025 harvest.

While prices briefly recovered after the government announced a 60-day import ban in September, FFF said its field reports show farmgate prices have again fallen to around P8/kg with the start of the wet season harvest.

“Palay traders expect cheap imported rice taxed at only 15% to flood the market once the ban is lifted in November. This compels them to buy low to stay competitive,” said Raul Montemayor, FFF national manager.

“Extending the ban by 15 to 30 days will not change this perception,” he said.

Montemayor said restoring the 35-percent tariff would encourage traders to raise their buying prices. He said that while import costs would rise, retail prices for consumers need not increase due to “large margins currently being enjoyed by importers, wholesalers and retailers.”

The FFF also criticized the National Food Authority’s (NFA) limited capacity to buy more palay from farmers, citing warehouse congestion.

The NFA’s stock has reportedly deteriorated, with recent auctions of aging inventory yielding poor results. This comes despite a food security emergency declared in February 2025 that allowed for subsidized sales to the public, which have seen weak demand.

To ease the problem, the FFF reiterated its proposal to use large farmer cooperatives as satellite buying stations for the NFA.

“These cooperatives already have warehouses, dryers, trucks, personnel, and other assets that can help the NFA buy, store, mill, and distribute its stocks at lower cost,” Montemayor said.