Gradual rise in rice tariff proposed for next harvest

THE Department of Agriculture (DA) said it will propose to economic managers a gradual increase in the rice import tariffs by the next harvest.

The DA said it wants the current 15% tariff to be retained until the end of the second quarter to keep rice prices from rising, Agriculture Secretary Francisco Tiu Laurel, Jr. told reporters.

He said the Philippine harvest ended last month.

“I will not increase for now because the harvest in the countries of origin is almost finished,” Mr. Laurel said, adding that any tariff increase should be timed for the harvest seasons of rice exporters.

The government in July 2024 slashed tariffs on rice imports to 15% from 35% until 2028 to keep prices in check. The rate is subject to review every four months.

“We (will make the) recommendation that we can consider increasing it little by little,” Mr. Laurel said. “But it’s a matter of timing.”

Farmer groups, including the Samahang Industriya ng Agrikultura (SINAG), said in a recent petition to the Tariff Commission that the declaration of the food security emergency, which triggered the release of the government’s rice reserves, and the maximum suggested retail price scheme for imported rice were “admissions of the failure” of the reduced tariff rate to bring down rice prices.

The Commission heard the petition in March.

SINAG said the tariff reduction resulted in P15 billion in foregone revenue between July and December 2024.

Mr. Laurel in March said any sudden restoration of the 35% tariff rate for imported rice could lead to market shocks.

Secretary Arsenio M. Balisacan of the Department of Economy, Planning and Development has said that the government is open to a seasonal tariff scheme for rice imports to “stabilize farmers’ incomes.”

Under the proposal of the Federation of Free Farmers, levies would be timed to not clash with the height of the harvest season. — Kyle Aristophere T. Atienza