Marcos suspends rice importation, holds off tariff hike

Metro Manila, Philippines - President Ferdinand Marcos Jr. suspended rice importation to protect farmers but held in abeyance the decision to increase the tariff on rice.

Malacañang confirmed on Wednesday, Aug. 6, that Marcos directed a 60-day suspension on rice imports beginning Sept. 1, after a meeting with Cabinet officials on the sidelines of his state visit to India.

Agriculture Secretary Francisco Tiu Laurel Jr. recommended both the import pause and tariff hike as low farmgate prices hit farmers. 

Industry stakeholders have reported farmgate prices in some areas bottomed out at P6 per kilogram.

Tiu Laurel had wanted to gradually raise the duty from 15 percent to 25 percent, then to 35 percent. Marcos slashed the rate by more than half from 35 percent to 15 percent in June last year in a bid to lower retail prices.

The president, however, was not inclined to discuss a higher rice tariff, the Palace said.

“We will still see if we need to resort to that,” Communications Secretary Dave Gomez said.

In a statement, Tiu Laurel said the DA will assess the impact of the import freeze on palay prices and the broader market.

“If this strategy leads to higher farmgate prices and better income for our farmers, we may no longer need to raise the tariff,” he said. “What matters most is that we make a well-informed decision because millions of lives depend on the outcome.”

Agricultural group SINAG, meanwhile, said the suspension on rice imports “offers no real benefit to our farmers” as rice tariffs were untouched.

“Importers can simply advance or delay their shipments to work around the suspension, especially since the tariff rate remains at a low 15%,” SINAG executive director Jayson Cainglet said. “There is also no urgency for new imports at this time, as warehouses — including those of the NFA (National Food Authority) — are already at full capacity.”

The United States Department of Agriculture said the Philippines may import 5.4 million metric tons (MMT) in the 2025-2026 season.

As of July 31, the Bureau of Plant Industry said less than half of this projection, or around 2.4 MMT, have arrived in the country.