MANILA – Agriculture Secretary Francisco Tiu-Laurel Jr. on Thursday said he would propose the imposition of “hybrid” tariff on rice, as part of the efforts to lower the price of the staple in the country.
“I might recommend the hybrid [tariff], na (that on a) certain type of rice, 15 [percent] pa rin (it’s still 15 percent), [and on] a certain type of rice or quality of rice, ‘yung 5 percent, puwedeng i-akyat sa 35 [percent] (the 5 percent could go up to 35 percent), something like that,” Tiu-Laurel said in a Palace press briefing.
Tiu-Laurel said there is also a clamor from the stakeholders to revert the rice tariffs to the original 35 percent.
He said the proposals would still be subject to a thorough review.
“Kapag bumaba na ‘yung presyo talaga at sumunod lahat, baka puwede nang ibalik (Once the price drops and everyone follows, maybe it can be returned). But as of the moment, anyway, may review naman (there is a review) even for months eh. So, talagang pag-aaralang mabuti iyan (it has to be thoroughly studied),” Tiu-Laurel said.
President Ferdinand R. Marcos Jr. issued Executive Order 62 in June 2024, lowering the tariff on rice from 35 percent to 15 percent.
The DA earlier said retail prices of rice in local markets could have been higher without the tariff reduction on imported rice.
Earlier Thursday, Tiu-Laurel announced that he would declare a “food security emergency” before the end of January following the recommendation of the National Price Coordinating Council (NPCC) to address the rising retail prices of rice.
Tiu-Laurel told Palace reporters that he is still waiting for the formal transmittal of the NPCC’s recommendation to the DA.
“Once I receive it then, of course, I will consult also our President for his comments,” he said.
“Under the amended RTL (Rice Tariffication Law), the NPCC shall declare a food security emergency on rice based on the following conditions existing: one, supply shortage or extraordinary increase in price. During the last NPCC meeting, the DA presented data that show that even with the tariff cuts and the world prices of rice is going down, the retail prices have not gone down significantly. Thus, the trend level of prices is extraordinary.”
Lower rice imports
Tiu said the PHP58 per kilogram maximum suggested retail price (MSRP) on imported rice may drop to as low as PHP50/kg in March, depending on global rice prices.
The MSRP will be implemented on January 20 in Metro Manila to address the spike in retail rice prices and profiteering.
Tiu-Laurel also projected a lower rice imports for 2025, estimating that it would reach 4.5 million metric tons (MMT) this year.
The Philippines imported a record-breaking 4.78 MMT of rice in 2024, according to government data. (PNA)