By Chloe Mari A. Hufana, Reporter
THE Department of Agriculture (DA) on Monday recommended to President Ferdinand R. Marcos, Jr. a suspension of rice imports and increased tariffs to protect local farmers amid declining farmgate prices.
This is meant to shield Filipino rice producers from the continued influx of lower cost imported rice, which has been putting pressure on domestic prices in recent months, according to the Presidential Palace.
The move seeks to strike a balance between supporting local farmers and maintaining a stable food supply across the country, it added.
Presidential Communications Office Acting Secretary Dave M. Gomez did not give further details regarding the proposal but noted that Cabinet members will discuss this with Mr. Marcos during his trip to India from Aug. 4 to 8.
In June, Agriculture Secretary Francisco P. Tiu Laurel, Jr. told the House of Representatives that he recommended that the Tariff Commission implement a phased increase in rice import duties to the original 35% from the current 15%.
He also proposed that the tariff adjustment be aligned with the harvest periods of the Philippines’ key suppliers — around late September for Vietnam and December for Pakistan — to mitigate any adverse impact on the local market.
Mr. Marcos signed Executive Order (EO) No. 62 in June 2024, which slashed rice import tariffs to 15% from 35% until 2028 in a bid to curb rice prices. The tariff is subject to review every four months.
Former Agriculture Undersecretary Fermin D. Adriano said suspending rice imports or limiting these to 1 million metric tons (MT) could trigger a severe supply shortage.
Last year, the Philippines imported 4.7 million MT and is expected to import even more this year.
“The United States Department of Agriculture predicts we will import a higher amount this year,” Mr. Adriano said in a Viber chat. “How will DA fill up the huge supply gap, given that dramatic productivity levels cannot be achieved in a year’s time?”
Mr. Adriano proposed a seasonal tariff system — lower tariffs during off-peak seasons and raise them during local harvests to protect small farmers.
Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet said since Congress is currently in session, Mr. Marcos should request the passage of “enabling legislation that will revert rice import tariffs to their original levels.”
“If the discussions with the President push through, the President can perhaps request Congress to act swiftly on the proposal to restore the rice tariff,” he said.
The President can only increase tariffs via an EO when Congress is on recess.
Mr. Cainglet said waiting until Congress’ recess in October “is not an option.”
“Farmers are having second thoughts about planting right now. Those who have already planted are worried because the price of unmilled rice is only between P8 and P12, and that’s during the off-peak harvest. So, what more when the peak harvest comes in October or November?”
Meanwhile, Federation of Free Farmers (FFF) Raul Q. Montemayor said adjusting the tariffs on rice through an EO will have to undergo a lengthy process of consultation and deliberations.
FFF proposed that the tariff adjustment be done by invoking Republic Act 8800 or the Safeguard Measures Act, which authorizes the secretary of agriculture to impose provisional duties on top of current tariffs in the event of an import surge that harms or threatens to harm local farmers.
Mr. Montemayor said provisional duties can be set to a level that would temporarily discourage additional imports and would apply to imports from both Association of Southeast Asian Nations (ASEAN) and non-ASEAN countries.
Citing field reports, Mr. Montemayor said prices for freshly harvested palay have fallen by 31% to as low as P8 per kilo from prices a year ago, resulting in an estimated P54.5-billion drop in farmers’ incomes during the first six months of the year.
He attributed this steep decline to the “uncontrolled entry of cheap imports.”
The supply glut was exacerbated by the aggressive rollout of the subsidized P20-per-kilo rice program, he added.
Mr. Montemayor noted that while the option for the President to impose a temporary ban on rice imports is provided under the amended Rice Tariffication Law, it may be flagged as a violation of World Trade Organization rules that prohibit the reimposition of quantitative import restrictions.
RESOLUTION FILED
Meanwhile, two senators on Monday filed a joint resolution calling for the removal of the President’s authority to adjust tariff rates on imported rice, and reverting tariffs to 35%.
Senate Joint Resolution No. 2, called on Congress to “terminate the delegated authority of the President to adjust tariff rates on rice, and reverting tariffs to previous levels.”
Palace Press Officer Clarissa A. Castro did not immediately reply to a Viber message seeking comment.
The resolution was signed by Senator Ana Theresia N. Hontiveros-Baraquel and Senator Francis “Kiko” N. Pangilinan.
The Philippine president has the authority to increase, reduce, revise, or adjust existing rates of import duty on rice under the Constitution and Republic Act No. 10863, or the Customs Modernization and Tariff Act.
“The plight of Filipino farmers is urgent and demands decisive legislative action to ensure they receive a fair return for their produce and to secure the nation’s food future by prioritizing domestic production over unchecked imports,” the resolution said.
The resolution also called on the government to revert tariffs on rice to 35% from both in-quota and out-quota.
The resolutions also proposed that the committees of both chambers hold caucuses to review the current situation of the rice industry. This includes market prices, production costs, import volumes, and the welfare of local producers.
The chairpersons of each committee will then suggest policies that will establish appropriate and responsive tariffs and rice import levels “that effectively protect domestic producers, ensure national food security, and promote the long-term viability of the local rice sector.” — with inputs from Adrian H. Halili and Kyle Aristophere T. Atienza
