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President Ferdinand Marcos, Jr. ordered the suspension of rice importation for 60 days beginning September 1 to protect local farmers
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Marcos issued the directive after consulting with Cabinet members and upon the recommendation of Agriculture Secretary Francisco Tiu Laurel Jr.
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Tiu Laurel described Marcos’ decision to suspend rice imports for 60 days—while holding off on a tariff hike—as a “measured response” to current challenges faced by rice farmers
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With cheaper imports flooding the market, reports indicate some private traders are now buying palay for as low as P8 to P10 per kilo—well below the production cost of P12 to P14 per kilo
President Ferdinand Marcos, Jr. has ordered the suspension of rice importation for 60 days beginning September 1 to protect local farmers reeling from low prices for palay (unmilled rice) during this harvest season.
Marcos issued the directive after consulting with Cabinet members on the sidelines of his state visit to India from August 4 to 8, and upon the recommendation of Agriculture Secretary Francisco Tiu Laurel, Jr., according to a statement from Presidential Communications Office (PCO) Secretary Dave Gomez.
Tiu Laurel in a separate statement said Marcos’ decision to suspend rice imports —while holding off on a tariff hike—is a “measured response” to the current challenges faced by rice farmers.
“The suspension is a more calibrated action—one that we can quickly reverse if needed,” Tiu Laurel said.
“It gives us the flexibility to act fast to protect both our farmers and our consumers. A premature tariff hike, on the other hand, could backfire and would take much longer to undo,” he added.
The DA chief said Marcos’ suspension invokes the authority of the chief executive granted under the Rice Tariffication Law to temporarily halt for a limited period or limit foreign rice purchases in order to stabilize domestic prices.
Globally, bumper harvests — including a record-breaking 9.08 million metric tons of palay produced by the Philippines in the first half of the year — and the lifting of India’s rice export ban have put downward pressure on prices, particularly from exporting countries. From over $700 per metric ton, Vietnamese rice DT8 variety, the main type widely favored by the Philippine market, now sells for $470 per ton, freight-on-board as of last week.
With cheaper imports flooding the market, reports indicate that some private traders are now buying palay for as low as P8 to P10 per kilo—well below the production cost of P12 to P14 per kilo. Farmers have attributed this sharp decline to the influx of cheaper imported rice.
Currently, the landed cost of 5% broken imported rice has dropped to about P35 per kilo—or even lower in some cases.
While the DA had recommended raising the rice tariff from the current 15% to 25%—and later to 35%—the agriculture department said Marcos opted to delay that decision. The rice import tariff was lowered in July of last year to counter rising rice prices at the time.
Tiu Laurel said DA will use the two-month import freeze to assess its effects 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 explained.
“What matters most is that we make a well-informed decision because millions of lives depend on the outcome,” he added.
