NEW DELHI, India — Malacañang urged Congress to look for other factors as to why rice prices soar amid the declining price on global supply chains after Senators Risa Hontiveros and Kiko Pangilinan filed a joint resolution seeking to remove presidential powers to modify tariff rates on rice.

According to the lawmakers, the current setup poses a negative impact which affects local farmers.

In Republic Act No. 10863 or the Customs Modernization and Tariff Act (CMTA) of 2016, the President is delegated an authority to adjust tariffs rates on rice.

Palace Press Officer Undersecretary Claire Castro defended President Ferdinand Marcos Jr. actions of lowering the tariffs implemented on the importations of rice.

“I heard that what Sen. Kiko Pangilinan wanted in the resolution was to remove or withdraw the power of the President to adjust tariff, particularly on rice. What the President did was absolutely right when he decided to lower the tariff when the price of rice was really rising,” she said.

Castro explained that rice was expensive in the past few years which led to the government’s decision to lower the price of rice.

“That's why the tariff was adjusted. It's not for him, not for himself, but for our citizens who are really struggling to buy cheap rice. But the problem is probably not about the President adjusting the tariff,” she said.

She added that there are products that have flexible pricing, such as rice and other commodities. 

“It is not possible to simply enact a law and not give the President power regarding this because if there is a problem, an emergency, it will be difficult for the President to adjust the price. If the power is removed,” she said. “And if they remove this, the power from the President, to whom will they give it? Our legislators probably will not be able to negotiate with other countries and other leaders of the country to adjust the price of products.”

Go after shrewd traders

Castro reiterated that the National Food Authority (NFA) buys Palay from farmers at P23 to P30 per kilo rate compared to other traders who lowball farmers, tricking them of the government’s procurement of palay.

“If they say it's 9 pesos, it's not coming from the government. What we should focus on here is who these shrewd traders are, because the NFA is selling at 23 pesos per kilo,” she said. 

“Sometimes palay is 18 pesos per kilo. Farmers are not losing money at this price. So, what we should base our decision on here, especially senators and the executive branch, are the shrewd traders,” she added.

The Palace official urged farmers to report traders who do this as it is already considered as “economic sabotage”.

Castro also asked lawmakers to review the Rice Tariffication Law after the NFA was stripped of its power of importation rendering the government unable to import rice from other countries.

Meanwhile, Agriculture Secretary Francisco Tiu Laurel Jr. insisted that the government must not be hasty and must carefully review the effects of increasing rice tariff.

At present, the tariff rates on imported rice sits at 15 percent following Executive Order no. 62, implemented in June 2024.