The government’s decision to implement ‘flexible’ tariffs on rice imports strikes a compromise between planters and consumers, according to an economist.
Roehlano Briones, a senior research fellow at the Philippine Institute for Development Studies (Pids) made the pronouncement after the Department of Economy, Planning, and Development (DepDev) announced on Tuesday that the government will adopt a ‘more gradual and flexible tariff adjustment’ starting January 1, 2026.
Adjustments would be 5 percentage points per 5 percent change in international prices, subject to a minimum rate of 15 percent and a maximum rate of 35 percent, according to the DepDev.
Briones noted that although this could provide support to local planters struggling with declining farmgate prices, Filipino consumers stand to get the short end of the stick.
‘This will be good for farmers, not so good for consumers, but it strikes a compromise,’ Briones told the BusinessMirror on Wednesday. ‘We are already at 15 percent, so there’s nowhere to go but up. But it’s better than suspending imports.’
The socioeconomic planning body’s decision for a flexible tariff structure on the staple grain comes as the Economy and Development (ED) Council opted to maintain the tariff levied on rice shipments at 15 percent until December 31.
Sinag Executive Director Jayson Cainglet reiterated the group’s call to reinstate rice tariffs to 35 percent.
‘The current 15 percent tariff was introduced only as a temporary emergency measure at a time when global rice prices surged to around $680 per metric ton.’
He noted that global rice prices have since dropped by nearly 50 percent, hovering at $330 per metric ton (MT).
As the landed cost of shipments reaches P25 to P26 per kilo, he said imported rice would remain affordable even with the 35-percent rice tariffs.
‘The longer the reduced tariff remains in effect, the greater the damage to our local rice farmers, who are already reeling from depressed farmgate prices of palay.’