The Department of Agriculture (DA) is proposing to raise the tariff on imported rice to a range of 20 percent to 25 percent, a gradual restoration from the reduced rate of 15 percent, as the government plans to resume rice importation by January 2026 to secure the country’s buffer stock for the year.
The DA is finalizing the new rate and expects to announce the restored tariff levels by mid-December, Secretary Francisco Tiu Laurel Jr. said Thursday.
Tiu Laurel said the import resumption is a precautionary move to ensure supply stability, but stressed that the government could suspend import arrivals “anytime if we feel like we have enough supply.”
“The increase in tariff is at least 20 percent, maybe 25 percent, and we believe that will deter traders from dictating the price,” he said.
The government also aims to increase its domestic rice procurement. The DA is targeting to buy up to 20 percent of total domestic rice production next year, with the procurement budget potentially rising from P9 billion to P19 billion if the new Rice Act is approved.
The proposed measure would allow the National Food Authority (NFA) to retail milled rice while purchasing palay (paddy rice), enabling the state to influence market prices more directly.
New silos and drying facilities scheduled for completion by mid-2026 will more than double the government’s storage capacity, adding 800,000 tons of space, the department said.
Tiiu Laurel Jr. also announced the implementation of a government-mandated floor price for palay, following President Ferdinand Marcos Jr.’s issuance of Executive Orders 100 and 101 to stabilize farmgate prices and expand direct government procurement from farmers.
Under the new pricing scheme, government agencies and local government units buying directly from farmers should pay P17 to P23 per kilogram for fresh (wet) palay, and P23 to P30 per kg. for clean and dry palay.
He said the price ranges are based on prevailing National Food Authority (NFA) valuations as provided under Section 9 of EO 100.
“The floor price ensures that no farmer will be forced to sell palay below production cost. Clearly, we will not allow traders to dictate prices at the expense of our farmers. When the government buys, the minimum is P17 to P23 for wet palay and P23 to P30 for dry. That is now the standard,” he said.
The measure seeks to protect farmers from depressed buying prices, which in some areas had fallen to levels that no longer cover production costs.
