The Department of Agriculture (DA) is aiming to retain the current rice tariff rate of 15 percent during the upcoming review next month, with the proposed gradual increase temporarily on hold due to concerns about timing.

Agriculture Secretary Francisco Tiu Laurel said the government would likely push the retention of the tariff rate by the end of the second quarter to avoid potential price increases in the commodity.

In a chance interview, Laurel explained that the Philippines’ harvest season ended last month, coinciding with the end of harvest for other rice-exporting countries.

Increasing the duties levied on imported rice at a time when supply is limited could further drive up retail prices, undermining the recent gains of relatively lower prices of rice.

As such, the DA chief said he would likely push to increase the tariff rate during the harvest seasons of exporting countries.

“We already have the recommendation that we can consider increasing it little by little. But it's a matter of timing,” said Laurel.

Last year, President Ferdinand “Bongbong” Marcos Jr. signed Executive Order (EO) No. 62 to slash rice tariffs from 35 percent to 15 percent.

Under the order, the rate is subject to a periodic review every four months.

The Tariff Commission (TC), the government agency tasked to recommend and develop tariff policies, earlier conducted a hearing after a petition from a farmers’ group to revert the tariff rate to 35 percent.

Samahang Industriya ng Agrikultura (SINAG) cited the imposition of a food security emergency on rice and the maximum suggested retail price (MSRP) scheme on imported rice as “admissions of the failure” of EO 62 in reducing rice prices.

The group pointed out that tariff reduction resulted in a loss of ₱15 billion in foregone revenues between July and December 2024.

In response, Laurel earlier said that suddenly raising the tariff rate from 15 percent to 35 percent would lead to market shocks. 

In this case, the more appropriate move for the government is to raise the rate gradually, or by the secretary’s words—little by little.

Laurel said the rate of increase will still have to be determined.

“I have to consult with the other economic managers on this,” he said.

According to the United States Department of Agriculture (USDA), the country’s rice imports will rise by two percent—from 5.4 million metric tons (MT) to 5.5 million MT—within the period starting July this year and ending in June next year.

On the part of the DA, it projected that rice imports will decline to as low as 3.8 million MT this year, after reaching a record-high of 4.8 million MT in 2024.