The Department of Agriculture (DA) is recommending an increase in imported rice tariff and a temporary suspension of rice imports to protect Filipino farmers, the presidential palace announced on Monday.
The Cabinet will “discuss this urgent matter with the president in India on the sidelines of his state visit,” Communications Secretary Dave Gomez said.
Declining to specify the proposed increase in tariff rate, he said the details will be discussed and agreed upon by Cabinet secretaries with President Ferdinand Marcos Jr.
The Cabinet is scheduled to “discuss this urgent matter with the president in India on the sidelines of his state visit,” Gomez said.
Agriculture Secretary Francisco Tiu Laurel Jr. later confirmed he made such recommendation.
“Yes, that’s correct,” he said in a message to Malaya Business Insight, referring to both the proposed tariff increase and temporary suspension of rice imports.
Farmers hit hard
The proposed move marks a possible reversal of Executive Order 62, issued in June 2024, which slashed tariffs on imported rice to 15 percent from 35 percent to lower market prices.
The order, however, is subject to review every four months.
Since then, local farmers have struggled with falling palay prices.
Philippine Statistics Authority (PSA) data showed the farmgate price of paddy rice dropped 31 percent year-on-year in June, from P24.93 to P16.99 per kilo.
DA spokesperson Joycel Panlilio earlier said the agency was looking at a gradual tariff increase starting at 25 percent to avoid price shocks.
DA Undersecretary Arnel de Mesa reiterated this approach, saying the recommendation is to raise the tariff “from 15 percent to 25 percent for now.”
“When EO 62 was signed, the price of imported rice was around $700 per metric ton (MT). Now, it’s closer to $300–$400 per MT, and local production is strong,” he said.
Farmers welcome proposal
Farmers’ groups welcomed the proposal. Samahang Industriya ng Agrikultura (SINAG) blamed EO 62 for the steep decline in palay prices, saying it pushed buying prices to as low as P8 to P10 per kilo.
“This policy misstep gravely impacted our farmers,” SINAG executive director Jayson Cainglet said. “Given that Congress is in session, we urge the president to seek immediate passage of enabling legislation.”
He stressed that a new executive order on tariffs cannot be issued while Congress is in session and that “waiting until October is not an option.”
Cainglet also noted that the landed cost of imported rice has dropped to P23–P25 per kilo, with 2.6 million MT already brought in as of end-July. Last year’s imports reached a record 4.8 million MT.
“At this critical juncture, limiting or controlling imports is the appropriate response,” he added.
Price support urged
SINAG is also calling for: • A P60-billion palay procurement budget for the National Food Authority (NFA); • A floor price of P18 per kg for fresh and P23 per kg for dry palay; and • A temporary palay price subsidy of P6 per kg.
Meanwhile, the Federation of Free Farmers (FFF) welcomed the DA’s move but criticized its timing.
“We’re relieved the DA finally acknowledged the problem. But they should’ve acted sooner,” FFF national manager Raul Montemayor said.
Montemayor warned that raising tariffs should not result in higher retail prices if profiteering is addressed.
“The average trading margin before the rice crisis was P13 per kg. It has now ballooned to more than P20 per kg despite lower global prices,” he said.
Legal leeway sought
FFF suggested invoking the Safeguard Measures Act, which allows the DA to impose provisional duties during import surges that harm farmers. These could apply to both Asean and non-Asean sources.
The group argued that issuing a new EO would take too long and could only happen during Congress’s recess in October.
They also cited legal limitations under World Trade Organization (WTO) rules, warning that an outright import ban — though allowed under the amended Rice Tariffication Law — could be flagged as a trade violation.
Industry backs move
Danilo Fausto, president of the Philippine Chamber of Agriculture and Food Inc. (PCAFI), voiced full support to the DA’s proposal, though he declined to elaborate.
PCAFI is an umbrella group of 48 agricultural industry associations covering sectors from rice, poultry, and vegetables to fisheries, dairy, palm oil, root crops, and even butterfly breeding.
Current rice prices
Based on DA’s August 2 market monitoring in Metro Manila:
• Local well-milled rice was priced at P37–P52/kg, while regular milled rice ranged from P35–P42/kg.
• Imported well-milled rice sold for P38–P50/kg, and regular milled at P33–P45/kg.
• Premium local rice was priced at P46–P58/kg, and special varieties reached P52–P65/kg.
• Imported premium rice was P42–P48/kg, with special varieties selling for P50–P65/kg.
These retail prices reflect prevailing market rates and are not subsidized.
