Finance Secretary Ralph Recto clarified that the Marcos administration has no plans to further lower tariffs on imported rice, stressing that the government must protect farmers while keeping food prices manageable.
Speaking at a forum organized by the Economic Journalists Association of the Philippines (Ejap), Recto told reporters that President Ferdinand Marcos Jr. had only approved a 60-day suspension of rice importation starting September 1—an order that is unlikely to be extended.
“I only agreed to [import] suspension,” Recto said. “The decision of the president is suspension. That’s all.”
The temporary halt, announced last week, aims to stabilize local palay prices and shield farmers from cheaper foreign rice. The president has yet to decide on the Department of Agriculture’s proposal to gradually restore rice tariffs to 35 percent from the current 15 percent.
In June, Mr. Marcos signed Executive Order No. 62, lowering rice tariffs from 35 to 15 percent until 2028 to temper retail prices and ease food inflation. The rate is reviewed every four months, with analysts crediting the policy for the country’s multiyear-low inflation in July.
According to government data, the consumer price index rose just 0.9 percent year-on-year last month—the slowest increase in almost six years—driven partly by a 15.9 percent drop in rice prices, the steepest decline since 1995.
However, concerns remain over how to balance the needs of farmers and consumers. Socioeconomic Planning Secretary Arsenio Balisacan said a technical group will study ways to raise farmers’ incomes while keeping prices affordable.
“There are three parties,” Balisacan explained. “One is the farmers—the farm-gate price they receive. The second is the consumers. The third is the economy, through factors like inflation and wages. All of these have to be reconciled so that it’s a win-win for everyone.”
