Traders are pointing to the flawed guidelines of Executive Order (EO) 62, which cut rice import duties from 35 percent to 15 percent, for the government’s failure to substantially bring down retail prices of rice.
Local rice traders argued that the measure has instead created imbalances in the market.
Philippine Rice Industry Stakeholders Movement (PRISM) co-founder Orlando Manuntag, a rice trader himself, highlighted the absence of limits on the importation of rice varieties under EO 62.
“The devil lies in the details of the law itself,” Manuntag said, explaining that most importers brought in premium rice, leaving the market underserved with affordable options.
On June 20, President Marcos issued EO 62 through Executive Sec. Lucas Bersamin to help moderate rice prices at a time when tight supply had triggered an unabated surge in retail prices.
The order sought to lower traders’ costs by imposing a Most Favored Nation (MFN) tariff schedule on rice imports, which was held at a much lower 15 percent.
“The implementation of an updated comprehensive tariff schedule aims to augment supply, manage policies, and temper inflationary pressure of various commodities, consistent with the Philippine national interest and the objective of safeguarding the purchasing power of Filipinos,” EO 62 stated.
Manuntag disclosed his own importation strategy amid import imbalances: half premium rice and half well-milled and regular-milled rice.
His clarifications came on the heels of criticisms that rice traders, importers and other “middlemen” have been enjoying lower tariffs on the staple grain but have refused to pass on the savings to consumers.
He also defended retailers, often blamed for price surges, stressing that their profit margins are slim.
“Retailers typically mark-up rice by only 4 to 5 pesos per kilo to cover essential expenses like rent, permits, and taxes. They’re not the problem,” he explained, noting that small-scale rural retailers sell as little as five bags daily.
The crux of the issue, according to Manuntag, lies with importers prioritizing premium rice for higher profits. Data showed that 74% of rice imports in 2024 were premium varieties, while only 4% were low-cost rice.
“The mass market needs affordable rice, but importers focus on premium varieties, limiting access to cheaper options,” he said.
Manuntag criticized the government’s failure to regulate rice importation.
“When we open trade in 2019, we mimicked the global market without instituting clear guidelines. Importers favored high-margin premium rice, depriving the market of affordable options,” he remarked.
He called for stricter rules requiring a balanced mix of rice imports, ensuring an adequate supply of low-cost rice.
Manuntag said most traders are in favor of the reinstatement of the National Food Authority’s (NFA) traditional mandate, which included price stabilization and buffer stocking.
“The NFA’s role was critical in maintaining market balance. Its removal has left consumers and retailers vulnerable to market forces,” he said.
The Department of Agriculture (DA) has faced criticism for its inaction, with Manuntag pointing to systemic issues in existing laws.
“Loopholes in current policies allow importers to focus on high-margin products, leaving ordinary Filipinos burdened by high prices,” he noted.
“This is a critical time to rethink the NFA’s role. Restoring its mandate could stabilize prices and create a more equitable market,” he added.
As policymakers deliberate over the NFA’s future, industry leaders warn that without decisive action, high rice prices will continue to strain Filipino consumers.
It can be recalled that a Tuesday statement by National Economic and Development Authority (NEDA) Director Nieva Natural saying that the lowering of tariffs on rice has failed to translate to lower retail prices has sparked friction with the Department of Agriculture.
DA spokesperson Arnel de Mesa tried to refute the NEDA official’s observation, citing that the agency’s market monitoring activities has shown a softening in rice retail prices.
Furthermore, he said that rice prices would probably be much higher today had tariffs not been reduced.
Meanwhile, Marikina City 2nd district Rep. Stella Luz Quimbo recently called out the DA for not doing enough to bring down the retail prices of the staple commodity.
She also rejected the agency’s supposed claim that it was powerless to address the soaring prices of rice in the country.
For his part, Albay Rep. Joey Sarte Salceda, chair of the House committee on ways and means, has requested the Bureau of Internal Revenue to look into the filings and tax payments of top rice importers, following allegations of profiteering in the domestic rice trade.
