Agriculture Secretary Francisco Tiu Laurel Jr. is proposing a gradual return of the rice import tariff rate from the current 15% back to 35% to avoid disrupting efforts to lower rice prices.

In a recent statement, Tiu Laurel mentioned his recommendation to the Tariff Commission during a hearing at the House of Representatives, suggesting that any future increases in the rice import duty should be strategically timed to minimize negative impacts on local and global markets.

He emphasized the importance of a gradual increase, eventually reaching the 35% duty rate to prevent market disruptions and stabilize prices.

Tiu Laurel expressed concerns that a sudden 20-percentage-point hike could cause disturbances in the rice market, affecting both local and global trade, and undermining government efforts to control prices.

The Philippines, being a major rice importer, has a significant influence on global rice pricing due to demand-supply dynamics and regulatory factors, according to Tiu Laurel.

President Ferdinand “Bongbong” Marcos Jr. had previously lowered the rice tariff rates to 15% until 2028 under Executive Order 62 issued in June 2024, which is currently under review.

This decision led to the implementation of various measures, including setting a maximum suggested retail price (MSRP) for imported rice, resulting in a decrease in rice prices and a notable slowdown in inflation.

Rice inflation was recorded at -12.8% in May and is projected to remain negative throughout 2025.

To mitigate the impact on the local market, Tiu Laurel suggested aligning the tariff hike with the harvest seasons of major suppliers like Vietnam and Pakistan.

Vietnam is the largest rice supplier to the Philippines, but efforts are being made to diversify sources, including India and Pakistan, to ensure stable and affordable imports.

Despite recent increases in global rice prices, which analysts attribute to market corrections, the Department of Agriculture plans to further reduce the MSRP on imported rice by P2 per kilo, bringing it down to P43 starting July 1.

Since the introduction of the MSRP in January, it has been lowered multiple times from the original P58 per kilo in response to falling global prices and reduced tariffs.