‘More Substantial Drop’ in Rice Prices Expected by January 2025 — Agriculture Secretary Tiu Laurel

Agriculture Secretary Francisco Tiu Laurel Jr. announced that the full impact of reduced tariffs on imported rice will be felt by January 2025, with a more substantial drop in prices expected. Although prices are projected to begin declining in October, demand for food typically spikes in December, potentially delaying the decrease.

The tariff reduction, implemented through Executive Order No. 62 issued by President Ferdinand Marcos Jr., lowered the rate for imported rice from 35% to 15%, aiming to make rice more affordable and ease its contribution to inflation.

Tiu Laurel explained that rice traders increased imports in anticipation of supply issues caused by El Niño, resulting in a surplus of around 612,000 metric tons, enough for nearly two months of consumption. He noted that rice imports spiked in August after a brief decline in June and July.

Palay prices have recently ranged between P23 to P25 per kilo, with some areas seeing prices drop to P16 to P17 during the wet season. The DA is monitoring these fluctuations to ensure fair prices for farmers.

Tiu Laurel also cited the influence of global market conditions, with high demand from Malaysia and Indonesia and price hikes from Thailand and Vietnam, though Myanmar’s price reductions have helped ease the pressure.

Despite the anticipated improvements, a petition has been filed with the Supreme Court by agricultural groups seeking a temporary restraining order against the tariff reduction.