DA backs gradual rice tariff hike to shield farmers

DA backs gradual rice tariff hike to shield farmers | Daily Tribune

The Department of Agriculture (DA) is walking a tightrope between protecting Filipino rice farmers and keeping inflation in check as it pushes for a carefully timed increase in rice import tariffs, Agriculture Secretary Francisco Tiu Laurel Jr. told Congress on Wednesday.

Speaking before the House of Representatives’ Murang Pagkain Super Committee, the DA chief said the agency has recommended to the Tariff Commission that any return to the tariff level of 35 percent from the current 15 percent should be rolled out in stages to avoid market disruption.

“Our suggestion is a gradual increase… eventually returning to the 35 percent duty,” Tiu Laurel said, warning that an abrupt hike could derail the administration’s progress in stabilizing rice prices.

The proposed tariff adjustment comes at a critical time for the Marcos administration, which has seen rice prices drop and inflation ease following a suite of emergency measures last year – including a tariff cut and a cap on the retail price of imported rice.

“A sudden increase could shock not only the local market but also ripple across the global rice trade,” the agriculture chief added, noting the Philippines’ influence on global rice pricing as one of the world’s top importers.

While the DA supports restoring the 35 percent duty, it wants to avoid undermining recent gains, including price reductions and inflation relief.

Tiu Laurel said the tariff hike should be timed with harvest seasons in major supplier countries – Vietnam and Pakistan – to lessen the blow to domestic supply chains and consumers.

Meanwhile, Nueva Ecija Rep. Rossana Vergara sounded the alarm over the effects of unrestricted rice imports on Filipino farmers, calling for higher tariffs to protect the struggling sector.

The issue has reignited debate over the Rice Tariffication Law, first passed in 2019 and amended in 2024 to triple the annual funding for the Rice Competitiveness Enhancement Fund (RCEF) to P30 billion.

The revised law promises stronger support for local farmers but also places pressure on the government to manage rising food costs amid global uncertainty.

Despite a recent uptick in global rice prices, the DA announced it will still reduce the maximum suggested retail price (MSRP) of 5 percent broken imported rice by P2 per kilo – from P45 to P43 – starting 1 July.