Manila: The Department of Agriculture (DA) on Monday expressed its intention to recommend maintaining a 15-percent tariff on imported rice to ensure the stability of retail prices. In June 2024, President Ferdinand R. Marcos Jr. enacted Executive Order 62, which reduced the tariff on imported rice from 35 percent to 15 percent, aiming to decrease retail prices by at least PHP7 per kilogram.
According to Philippines News Agency, DA Secretary Francisco Tiu Laurel Jr. emphasized the importance of timing the reversion of tariffs accurately. He mentioned that there would be no immediate increase, considering that the harvest season has concluded both locally and in exporting countries. Tiu Laurel plans to present this recommendation in June, ahead of the tariff commission’s review scheduled for July.
DA spokesperson Assistant Secretary Arnel de Mesa highlighted that maintaining the tariff would help stabilize retail prices, particularly during the lean months from June to September. He explained that during the harvest season, the supply is abundant, keeping prices in check. De Mesa warned of potential price spikes if the tariff is increased amidst limited supply and harvest, which the DA aims to avoid.
De Mesa also noted that the tariff retention supports the DA’s PHP20 per kilogram rice program, ‘Benteng Bigas Meron Na (BBM Na)’, which targets the vulnerable sector. He pointed out the challenges retailers face when retail rice prices are high, as consumers, including those in the middle-income bracket, would gravitate towards the PHP20 option, leading to complaints from retailers.
While Tiu Laurel remains committed to a ‘gradual reversion’ to a 35-percent tariff, he stressed the need for proper ‘management’ and timing. He suggested that the gradual reversion could commence during the next harvest season. At the start of EO 62’s implementation, retail rice prices ranged from PHP50/kg to PHP51/kg, as reported by the DA-Bantay presyo (price watch).
As of May 22, the prevailing prices of imported premium and well-milled rice in Metro Manila stand at PHP45/kg, while imported regular-milled rice is priced at PHP40/kg. Premium imported rice is priced between PHP43 to PHP55/kg, imported well-milled rice ranges from PHP40/kg to PHP48/kg, and imported regular milled rice ranges from PHP35/kg to PHP45/kg.
Local rice prices vary, with premium local rice ranging from PHP44/kg to PHP60/kg, local well-milled rice from PHP38/kg to PHP50/kg, and local regular-milled rice from PHP33/kg to PHP43/kg. The prevailing prices are PHP50/kg, PHP45/kg, and PHP40/kg, respectively.