The Department of Finance (DOF) assured a balanced approach between the interests of consumers and farmers regarding the proposed reduction in rice import tariffs.
Finance Secretary Benjamin Diokno stated that discussions are taking place at the highest level within the executive department regarding the proposal to lower the current 35 percent import tariffs on rice.
The DOF recommended a temporary decrease in rice import tariff rates from 35 percent to a range of zero percent to 10 percent for both ASEAN and the most-favored nation (MFN).
The DOF proposal received support from the National Economic and Development Authority (NEDA), the Foundation for Economic Freedom (FEF), and the Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. (FFCCCII).
The DOF, in coordination with other relevant government agencies and stakeholders, aims to pursue programs and support measures that balance the interests of domestic rice farmers while keeping rice affordable for consumers.
Farmer groups expressed their opposition to the proposed lowering of rice tariffs, citing concerns about the impact on farmers' livelihoods, food self-sufficiency, and local agriculture growth.
The Tariff Commission began hearings on the FEF's proposal to decrease the most-favored nation (MFN) tariff rates on rice to 10 percent for both in-quota and out-quota.
Diokno vows balanced approach to rice import policy
At a glance
The Department of Finance (DOF) has assured that the Marcos administration will carefully balance the interests of consumers and farmers on the proposed reduction in rice import tariffs.
Finance Secretary Benjamin E. Diokno said discussions are currently underway at the highest level within the executive department regarding the proposal to lower import tariffs on rice from the existing rate of 35 percent.
Diokno said the proposed reduction forms part of a comprehensive strategy aimed at lowering prices for consumers and addressing the potential shortage of rice caused by the ongoing El Niño phenomenon.
"As discussions are underway, the Department of Finance (DOF) maintains its support for an appropriate policy response that promotes the greatest good for the greatest number of Filipinos,” Diokno told reporters.
Previously, the DOF recommended a temporary reduction in rice import tariffs from 35 percent to a range of zero percent to 10 percent for both ASEAN and the most-favored nation (MFN) status.
The DOF's proposal received support from the National Economic and Development Authority, the Foundation for Economic Freedom (FEF), and the Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. (FFCCCII).
“Rest assured that the DOF, in coordination with other relevant government agencies and stakeholders, shall pursue programs and support measures to balance the interests of domestic rice farmers while keeping rice affordable for consumers—especially the poorest households,” Diokno said.
On Monday, farmer groups gathered at the offices of the FEF, the Tariff Commission, FFCCCII, and DOF to express their strong opposition to the proposed reduction in rice tariffs.
The groups argued that the proposal would devastate the livelihoods of millions of farmers, jeopardize the country's self-sufficiency in food production, and hinder the growth of local agriculture.
Last Friday, the Tariff Commission also began hearings on the proposal submitted by the FEF, which aims to reduce the MFN tariff rates on rice to 10 percent for both in-quota and out-quota.
Diokno said the President has the authority to lower tariffs through an executive order, as long as Congress is not in session.
Under Republic Act (RA) 11203, commonly known as the "Rice Tariffication Law," the President is granted the power to adjust rice import duty rates within specified limits.
However, this authority can only be exercised when Congress is not in session, and any modifications made will take effect 15 days after their publication.