By Chloe Mari A. Hufana, Reporter
THE Department of Agriculture (DA) on Monday proposed to President Ferdinand R. Marcos, Jr. a halt on rice imports along with heightened tariffs to safeguard local farmers facing declining farmgate prices.
This initiative aims to protect Filipino rice producers from the persistent influx of low-cost imported rice, which has been exerting pressure on domestic prices in recent months, as stated by the Presidential Palace.
The action seeks to find a compromise between aiding local farmers and ensuring a steady food supply throughout the country, it further noted.
Presidential Communications Office Acting Secretary Dave M. Gomez did not provide additional specifics about the proposal but mentioned that Cabinet members will deliberate on this with Mr. Marcos during his visit to India from Aug. 4 to 8.
In June, Agriculture Secretary Francisco P. Tiu Laurel, Jr. informed the House of Representatives that he suggested the Tariff Commission implement a gradual rise in rice import duties back to 35% from the current 15%.
He also recommended that the tariff modifications align with the harvest seasons of the Philippines’ primary suppliers — approximately late September for Vietnam and December for Pakistan — to alleviate any negative impact on the domestic market.
Mr. Marcos enacted Executive Order (EO) No. 62 in June 2024, which reduced rice import tariffs to 15% from 35% until 2028 to help manage rice prices. The tariff will be reviewed every four months.
Former Agriculture Undersecretary Fermin D. Adriano asserted that halting rice imports or restricting them to 1 million metric tons (MT) could lead to a significant supply deficit.
Last year, the Philippines imported 4.7 million MT and anticipates even greater imports this year.
“The United States Department of Agriculture expects we will import a larger quantity this year,” Mr. Adriano mentioned in a Viber chat. “How will DA fill the substantial supply void, considering that drastic productivity levels cannot be reached in just a year?”
Mr. Adriano suggested a seasonal tariff system — lower tariffs during off-peak periods and elevated rates during local harvests to support small farmers.
Samahang Industriya ng Agrikultura Executive Director Jayson H. Cainglet stated that since Congress is presently in session, Mr. Marcos should push for the passage of “enabling legislation that will revert rice import tariffs to their original levels.”
“If the discussions with the President proceed, he could potentially urge Congress to act quickly on the proposal to restore the rice tariff,” he noted.
The President can only increase tariffs through an EO when Congress is on recess.
Mr. Cainglet commented that waiting until Congress’ recess in October “is not a viable option.”
“Farmers are reconsidering planting at this moment. Those who have already sown are anxious since the price of unmilled rice ranges only between P8 and P12, even during the off-peak harvest. So, what will happen when the peak harvest occurs in October or November?”
Meanwhile, Federation of Free Farmers (FFF) Raul Q. Montemayor stated that modifying the tariffs on rice via an EO will require an extensive process of consultation and debate.
FFF proposed that tariff adjustments be executed by invoking Republic Act 8800 or the Safeguard Measures Act, which permits the Secretary of Agriculture to impose provisional duties on top of current tariffs in response to an import surge that harms or threatens to harm local farmers.
Mr. Montemayor indicated that provisional duties could be set at a level that would temporarily deter additional imports and would apply to imports from both Association of Southeast Asian Nations (ASEAN) and non-ASEAN nations.
Citing field reports, Mr. Montemayor reported a 31% drop in prices for freshly harvested palay, reaching as low as P8 per kilo compared to prices a year prior, resulting in an estimated P54.5-billion decline in farmers’ earnings during the first half of the year.
He attributed this sharp reduction to the “uncontrolled influx of inexpensive imports.”
The supply glut was worsened by the aggressive rollout of the subsidized P20-per-kilo rice initiative, he added.
Mr. Montemayor emphasized that while the amended Rice Tarification Law allows the President to impose a temporary ban on rice imports, it may be regarded as a violation of World Trade Organization regulations that prohibit the reimposition of quantitative import restrictions.
RESOLUTION FILED
Meanwhile, two senators on Monday submitted a joint resolution advocating for the revocation of the President’s authority to modify tariff rates on imported rice, and restoring tariffs to 35%.
Senate Joint Resolution No. 2 urged Congress to “terminate the delegated authority of the President to adjust tariff rates on rice, re-establishing tariffs to their previous levels.”
Palace Press Officer Clarissa A. Castro did not immediately respond to a Viber message seeking comment.
The resolution was co-signed by Senator Ana Theresia N. Hontiveros-Baraquel and Senator Francis “Kiko” N. Pangilinan.
The Philippine president possesses the power to increase, decrease, revise, or adjust existing import duty rates on rice under the Constitution and Republic Act No. 10863, or the Customs Modernization and Tariff Act.
“The status of Filipino farmers is pressing and necessitates decisive legislative action to guarantee they receive a fair return for their products and to secure the nation’s food future by prioritizing domestic production over unrestrained imports,” the resolution stated.
The resolution further urged the government to revert tariffs on rice to 35% for both in-quota and out-quota imports.
The resolutions also called for committees from both chambers to convene to assess the current circumstances of the rice industry. This includes market prices, production expenses, import volumes, and the welfare of local producers.
The chairpersons of each committee will then propose policies that will establish suitable and responsive tariffs and rice import levels “that effectively protect domestic producers, ensure national food security, and promote the long-term sustainability of the local rice sector.” — with contributions from Adrian H. Halili and Kyle Aristophere T. Atienza