Agri Chief Proposes Gradual Return to 35% Rice Import Tariff to Avoid Market Shock

MANILA – Agriculture Secretary Francisco Tiu Laurel Jr. is advocating for a phased restoration of the rice import tariff from the current 15% back to the original 35%, warning that a sudden increase could destabilize both local and international rice markets.

Speaking before the House’s Murang Pagkain Super Committee, Tiu Laurel said the Department of Agriculture has recommended a strategic and gradual hike in the tariff rate to the Tariff Commission to ensure minimal market disruption.

“We’re suggesting a return to the 35% duty, but it must be done gradually and timed carefully,” he stated, noting that abrupt changes could derail gains made in reducing rice prices.

Under Executive Order 62, President Marcos temporarily slashed rice tariffs to 15% in 2024 in response to global supply issues, including El Niño and India’s export ban. The current rate is in effect until 2028, though subject to review.

Tiu Laurel explained that the Philippines’ large import volume influences global rice prices and that timing any tariff hike with major harvest seasons in Vietnam and Pakistan—September and December, respectively—could ease the impact.

The Department of Agriculture also announced that the maximum suggested retail price (MSRP) for imported rice will be reduced by ₱2 to ₱43/kg starting July 1, reflecting continued price drops and tariff relief. Since its introduction, the MSRP has fallen from ₱58/kg in January.