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The House’s quinta committee also recommends the restoration of NFA’s trading and regulatory powers as well
MANILA, Philippines – The House quinta committee Wednesday, June 11, recommended that the government raise rice tariffs to 35% from from 15%, almost a year after the Marcos administration slashed rates.
The panel, which presented its recommendations during the last hearing of its investigation that started November 2024, supported the tariff increase to 35%, contrary to what other government agencies previously discussed.
“The last review which was two months ago, our position with NEDA (National Economic and Development Authority) is basically to recommend a gradual increase towards attaining 35% — revert,” DA chief Francisco Tiu Laurel Jr. said on Wednesday during the House hearing.
Tiu Laurel said that jumping from 15% to 35% “might create a big shock to the market again, even to the world market.” The Philippines remains the world’s top rice importer, hitting a record-high in 2024.
The Department of Agriculture has said that it meant to recommend keeping lower tariffs until the harvest season of supplying nations such as Vietnam, Thailand, and Pakistan.
Tariffs were slashed in 2024 as part of the government’s attempts to reduce rice prices, in keeping with President Ferdinand Marcos Jr.’s campaign promise of cheaper rice.
Since the tariff cut, the government has endeavored to fulfill this promise by selling National Food Authority’s (NFA) rice stocks at P20 per kilo to vulnerable groups and select minimum wage earners.
The House panel also recommended the reinstatement of regulatory and trading mandates of the NFA so it can supposedly help regulate prices by buying local palay at competitive prices and releasing cheaper stocks into the market.
Right now, the NFA’s mandate is restricted to keeping buffer stocks for emergencies. The government had to declare a food emergency, on grounds that there was extraordinary increase in prices, early this year so it can distribute NFA’s stocks.
During the Wednesday hearing, former agrarian reform chief Rafael Mariano expressed support for the recommendation to restore NFA’s trading and regulatory powers.
Mariano also said the P20/kilo rice program could be sustainable as long as there’s government subsidy, which he said can be taken from the annual rice tariff collection. – Rappler.com
