“`html
By Adrian H. Halili, Journalist
THE Department of Agriculture (DA) is contemplating prolonging the prohibition on rice imports until year-end, as farmgate rates of palay or unmilled rice persist to decline.
“I conferred with the President last week, and we agreed to prolong the import ban by at least 30 days,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. informed journalists in a blend of English and Filipino at the House of Representatives on Monday.
“It may potentially be extended until the year’s conclusion, depending on circumstances. The issue is that palay prices have fallen,” he continued.
President Ferdinand R. Marcos, Jr. previously mandated a 60-day halt of rice imports starting Sept. 1 to safeguard Filipino farmers during the harvest period and to stabilize rice costs. The halt was initially expected to conclude on Nov. 2 and pertains solely to regular milled and well-milled rice.
Last Friday, Presidential Communications Office Undersecretary Clarissa A. Castro indicated that the President instructed the extension of the import restriction but did not provide specifics.
According to Republic Act No. 12078, the President is authorized to suspend or forbid the importation of rice during a designated timeframe when there is an excess of local or imported supply, leading to a decrease in local prices.
“I also engaged with our rice millers and traders last week. They are actively advocating for the import prohibition to be extended until year-end,” Mr. Tiu Laurel mentioned.
Mr. Tiu Laurel noted there is “a significant possibility” that tariffs on imported rice could be increased before the import ban concludes.
“We are currently analyzing the figures from 20%, 25%, to 35%, and ideally, we can reach a decision before the (import) ban ends,” he added.
Tariffs on overseas rice stand at 15% until 2028.
Mr. Tiu Laurel stated that the extension of the import prohibition aims to support farmgate rates of unmilled rice, which had plummeted to P8 to P10 per kilo in certain regions. “This is a detriment to farmers,” he remarked.
The farmgate rate for palay decreased by 27.8% to P17.11 per kilo in August, down from the P23.71 per kilo last year, data from the Philippine Statistics Authority revealed.
EMERGENCY PROCUREMENT
The Agriculture chief also indicated that the President will issue an executive directive for emergency governmental procurement of palay.
“The DA also requested, and it has already been tentatively approved, for the President to issue a directive for the emergency procurement of palay and the urgent procurement for additional leasing and renting of storage facilities,” he mentioned.
Mr. Tiu Laurel stated that this would enable the agency to acquire more palay stocks from Filipino farmers in “low price regions.”
He added that the National Food Authority will procure palay from farmers at a minimum of P17 per kilo under the emergency initiative.
“We hope that this will assist. We are acting swiftly and deploying extra personnel so that if we acquire additional storage, they will be ready for us to buy and support our farmers,” he expressed.
The Philippines is the largest rice importer globally, according to the US Department of Agriculture. It is expected to import approximately 4.9 million metric tons this year.
Federation of Free Farmers National Manager Raul Q. Montemayor stated that extending the rice import ban to protect farmers would not influence inflation since local harvests are anticipated to mitigate any decline in rice deliveries.
“Rice costs and inflation should not escalate since whatever imported supplies are currently available in the market were procured at lower rates before the ban, and local stocks originate from recent harvests that were bought at low prices,” Mr. Montemayor stated in a Viber message.
He added that rice traders will persist in buying palay from farmers at low premiums “out of concern that cheaper imports will inundate the market once the ban is lifted.”
“We believe that the ban should be supported by reverting the import tariff to 35%, which will enable local traders to purchase at higher rates from farmers,” he said.
Conversely, Roehlano M. Briones, a senior research fellow at the Philippine Institute for Development Studies, mentioned that an ongoing rice import freeze would merely inflate retail prices.
“An extended prohibition will succeed if the intended effect is to bolster palay prices. However, it will also elevate retail prices, negating benefits from reduced retail prices for low-income consumers,” he remarked in a Viber message.
Former Agriculture Undersecretary Fermin D. Adriano stated in a Viber message that the prolongation will further irritate rice exporters from Vietnam, the country’s largest rice trading partner.
The Philippines is Vietnam’s principal rice export market, importing approximately 2.47 million metric tons in the first nine months of 2025, according to the Bureau of Plant Industry as of Sept. 11.
Source link
“`