Gradual rice tariff hike mulled — DA

The Department of Agriculture (DA) walks a tightrope between protecting rice farmers and keeping inflation in check as it pushes for a well-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 undertaken in stages to avoid distorting the market.

“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.

Strategic shift

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 local prices influence the global market as the country is 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.