DA Not Recommending Rice Tariff Hike in Upcoming EO 62 Review

The Department of Agriculture (DA) has announced that it will not recommend an increase in the rice tariff rate during the periodic review of Executive Order (EO) 62, which reduced the tariff on imported rice from 35% to 15%. The periodic review, mandated every four months, is set for November.

According to DA Assistant Secretary Arnel de Mesa, the department does not see the need to change the existing tariff rate under EO 62, which took effect in early July. While Agriculture Secretary Francisco Tiu Laurel Jr. previously suggested raising tariffs if retail rice prices dropped to between P42 and P45 per kilo, de Mesa explained that the impact of the lowered tariff will take time to reach consumers.

In the first six months of 2024, around 2.2 million metric tons of rice were imported under the previous 35% tariff. Since EO 62 took effect, about 440,000 metric tons of rice have been imported under the new 15% tariff regime, with 150,000 metric tons arriving in July and 260,000 metric tons in August.

Rice inflation has eased slightly, with prices in Metro Manila ranging from P42 to P68 per kilo for imported rice and P45 to P63 per kilo for local rice as of September 13.

A petition to block EO 62 is currently pending before the Supreme Court, filed by several agricultural groups, including the Federation of Free Farmers and former Magsasaka Party-list representative Argel Cabatbat.