Negosyante News

June 1, 2025 1:54 am

DA Backs Retaining 15% Tariff on Imported Rice to Help Stabilize Prices

The Department of Agriculture (DA) is recommending the retention of the 15% tariff on imported rice to help curb inflation and ensure stability in food prices.

DA spokesperson Assistant Secretary Arnel de Mesa emphasized during a public briefing that maintaining the lower tariff rate is essential for the broader economy and for sustaining government programs aimed at keeping agricultural commodities affordable.

He noted that about 25% of rice consumed in the Philippines is imported. With a 15% tariff, the country can avoid sharp price increases and help maintain lower overall inflation levels.

De Mesa added that poor households spend a large portion of their income on rice, making price stability crucial.

The DA also considers global rice prices, exchange rates, and shipping costs when evaluating tariff policies, especially during lean months when supply may be tight.

Government programs like the P20-per-kilo rice initiative will continue regardless of tariff adjustments.

President Ferdinand Marcos Jr. first reduced the tariff from 35% to 15% in June 2024. However, this move was met with resistance from farmers’ groups, who have since challenged the order’s constitutionality.

Despite the lower tariff, NEDA reported in December 2024 that the reduction had not significantly lowered rice prices.

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