DA proposes raising rice tariff from 15% to at least 25%

The Department of Agriculture (DA) plans to propose gradually increasing the 15 percent tariff on imported rice to at least 25 percent during the third periodic review to boost local palay prices.

Agriculture Secretary Francisco Tiu Laurel Jr. stated that raising tariffs would help lift farmgate prices for palay without significantly impacting retail market prices, as international rice prices are currently low.

Palay farmgate prices in June declined by nearly 32 percent year-on-year to P16.99 per kilo from P24.93 per kilo, according to Philippine Statistics Authority data.

DA Assistant Secretary Joycel Panlilio said that the gradual adjustment would help ease the burden on consumers while giving farmers better returns, adding that a meeting with DepDev is scheduled to discuss this measure further.

Farmers attribute low palay prices to rice imports and the government's decision not to cap them but impose tariffs instead.

Raising the tariff could also influence both supply and retail prices of imported rice in the country, potentially supporting local farmers without causing market shocks.