Recto: Extending rice import suspension beyond Oct. unlikely

The Philippine government is unlikely to extend the 60-day suspension of rice imports after end of October, and has no plans to raise tariffs on rice, Finance Secretary Ralph G. Recto said on Monday.

“The only reason for the suspension essentially is because it’s harvest season,” he said on the sidelines of the Economic Journalists Association of the Philippines Economic Forum on Monday.

Last week, President Ferdinand R. Marcos, Jr. ordered a halt on rice imports for 60 days starting Sept. 1 to provide relief for farmers, upon the recommendation of the Department of Agriculture (DA).

Asked if the government would extend the suspension beyond October, Mr. Recto replied: “unlikely.”

The DA also recommended gradually raising the rice import tariff to its original 35% rate from the current 15%.

Asked if there are plans to hike tariffs, Mr. Recto said: “Wala pa. There are no plans.”

Executive Order (EO) No. 62, which took effect in July 2024, lowered import tariffs on rice to 15% until 2028 to tame inflation. The order is valid until 2028 and is subject to review every four months.

Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said the government is still studying the impact of a hike in rice tariffs.

“We’ll be meeting our technical group in consultation. We’re preparing the study and then we’ll set an informed basis for the decision or our recommendation,” he told reporters.

Mr. Balisacan said there is a need to balance the interests of farmers, consumers, and the broader economy as it will affect inflation and wages.

“We have to use additional tools to address the concerns of various parties,” he said. “It has to be a win-win for all.”

Mr. Balisacan earlier said there are no inflation risks from the pause on rice imports, citing ample supply.

He cited estimates that supply will remain sufficient even if the government pauses imports for more than 40 days.

“The 60-day rice import pause was a quick fix to protect farmers during harvest — but it’s not a long-term solution. Instead of suspension, we need smart safeguards: fair tariffs, better buffer stocking, and stronger support for local production,” Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said in a Viber message.

However, farmer groups said the 60-day suspension is not sufficient to allow farmers to recover their losses and are calling for the tariff rate to revert to the original 35%.

“The 60-day suspension of rice importation is not truly sufficient for farmers to recover from years of losses caused by the consistently low farmgate prices of palay — a concrete consequence of the Rice Liberalization Law,” Amihan National Federation of Peasant Women and Bantay Bigas spokesperson Cathy L. Estavillo said via a Viber message.

The Rice Tariffication Law or Republic Act (RA) No. 11203, liberalized rice imports by replacing quota restrictions with tariffs, which the government then used to fund rice industry modernization.

“The suspension of importation is proof that RA 11203, despite amending the Rice Competitiveness Enhancement Fund, remains a hindrance to making rice affordable in markets and achieving rice self-sufficiency in the country,” she said.

Ms. Estavillo urged for the immediate review of the 35% tariff and the repeal of Rice Tariffication Law.

Samahang Industriya ng Agrikultura  spokesman Jay Cainglet said that while they welcome the import ban, their “primary and urgent appeal” is for the reversion of the rice import tariff to 35%.

In particular, they are calling for a 35% tariff rate for imports from the Association of Southeast Asian Nations (ASEAN) and 50% for non-ASEAN imports.

“Despite the temporary halt, palay prices are expected to remain depressed, and farmers will continue to incur losses,” he said.

Mr. Cainglet also claimed that the economic team “continues to feed the President false narratives” about the benefits of EO 62.

“In reality, the measure does little to protect local producers or stabilize the rice market. Importers can simply advance or delay their shipments to work around the suspension, especially since the tariff rate remains at a low 15%,” he said.

Foregone revenues

Meanwhile, Mr. Recto said the Bureau of Customs (BoC) is expected to see minimal foregone revenues from the two-month halt of rice imports.

“It will slightly drop, but we expect to hit the revenue targets this year,” he said.

In June, Customs collections rose by 6.4% year on year to PHP 85.46 billion, bringing the seven-month total to PHP 544.23 billion.

This year, the BoC is targeting to collect PHP 958.7 billion.

The Philippines is the world’s biggest rice importer, having brought in 2.44 million metric tons at the end of July, according to the Bureau of Plant Industry.

“Maybe at the end of the year after the harvest season, you probably will import the balance,” Mr. Recto said. — Aubrey Rose A. Inosante, Reporter