Philippines : Marcos extends rice import ban, approves tariff hike
President Marcos has approved extending the 60-day rice import suspension and raising import tariffs to stabilize palay prices. The exact extension and tariff increase are pending data review. Farmgate prices rose briefly from ₱8 to ₱14/kg. Local farmers favor higher tariffs over extending the ban to protect income.
The proposed extension of the 60-day suspension on rice imports and increase in rice tariffs has been approved by President Marcos, the Department of Agriculture (DA) said.
Agriculture Secretary Francisco Tiu Laurel said on Wednesday, Sept. 24, that the President has agreed to extend the import pause of rice imports in an effort to continue stabilizing prices of palay or unmilled rice.
Tiu Laurel said the DA has been directed to prepare the necessary orders to prolong the import freeze beyond the initial Nov. 2 deadline.
He did not specify how many days the suspension will be sustained, noting that it will be determined once there are “more accurate data on supply and prices of palay at the farm gate.”
Last week, Tiu Laurel said he is planning to recommend an extension of 15 to 30 days.
Marcos ordered the suspension of foreign rice purchases for 60 days starting Sept. 1 in order to boost local prices that have significantly declined.
The two-month import pause was implemented to protect local farmers from the influx of cheaper imported rice, which is largely blamed for the fall in farmgate prices of palay.
Based on data from the Bureau of Plant Industry (BPI), 3.08 million metric tons (MT) of rice had arrived in the country, as of Sept. 11.
Following the start of the import ban, Tiu Laurel said that palay prices have risen from a low of ₱8 per kilo to around ₱14 per kilo.
However, he noted that this was just a “brief” occurrence as farmgate prices once again dropped due to the onset of the main harvest season, which falls around October.
The impact on heavy rains, typically linked to La Niña phenomenon, could also drag palay quality, he said.
At the same time, Tiu Laurel said Marcos has also approved the proposed increase in tariffs on imported rice, although the amount has yet to be determined.
Tiu Laurel previously said that the DA is amenable to raising the tariff rate to its previous level of 35 percent from the current 15 percent.
However, he noted that this should be done in phases to minimize its potential impact on the rice market.
As the world’s largest rice importer, the Philippines’ policy adjustments could disrupt the global rice trade, potentially driving up prices of the staple.
For local farmers group Samahang Industriya ng Agrikultura (SINAG), raising the tariff rate is more beneficial than extending the import ban.
SINAG said prolonging the pause would not help reverse the dip in farmgate prices since the peak harvest season is already over by the end of November.
“Importers are unfazed by the import ban. They are happy to simply wait for the harvest season to be over,” the group said.
SINAG is urging the government to immediately revert the tariff on rice imports to 5 percent for Association of Southeast Nations (ASEAN) rice and 50 percent for non-ASEAN exports.
Based on the DA’s latest monitoring, the average retail price of premium rice is ₱43 per kilo, well-milled rice at ₱35 per kilo, and regular milled rice at ₱33 per kilo.
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Source : Manila Bulletin
