President Ferdinand Marcos Jr. has issued Executive Order No. 105, which adjusts the import duty on rice at a flexible rate between 15 percent and 35 percent, depending on world market prices.
Signed on Nov. 7 but released by Malacañang only on Sunday, EO 105 also creates the Inter-Agency Group on Rice Tariff Adjustment, which shall formulate the guidelines on the increase or decrease of tariffs imposed on imported rice.
Along with Marcos’ previous EO 102, which extends the suspension of the importation of regular and well-milled rice until year-end, the policies are seen to ensure stable prices of palay to benefit farmers and retail price of rice for consumers, and allow for adequate buffer stock until the next harvest season.
Under EO 105, the current 15 percent import duty on rice shall be maintained until Dec. 31.
But starting on Jan. 1, 2026, the tariff for imported rice shall be increased by 5 percentage points per 5 percent decrease in international rice prices, or decreased by 5 percentage points per 5 percent increase in international rice prices.
The tariff imposed on imported rice, both in-quota and out-quota, shall in no case drop below 15 percent or above 35 percent.
New rice tariffs body
An Inter-Agency Group on Rice Tariff Adjustment is created to formulate the guidelines, such as the determination of the thresholds, certification that the thresholds or trigger price levels have been reached, monitoring period, and other relevant details regarding the import duty on rice.
It shall be composed of representatives from the Department of Economy, Planning and Development (DepDev), Department of Agriculture (DA), Department of Trade and Industry (DTI), Department of Finance (DOF), and the Office of the Special Assistant to the President for Investment and Economic Affairs.
EO 105 amends EO 62, issued by Marcos in June 2024, which slashed rice tariffs from 35 percent to 15 percent until 2028 to help tame rice retail prices and slow food inflation. Under the previous EO, tariffs on imported rice were subject to a review every four months.
The latest EO, however, was not exactly what farmer groups have been seeking. They are asking President Marcos to gradually increase the tariff on imported rice from the current 15 percent to 35 percent.
The DA’s technical working group has until Dec. 15 to determine ‘the right tariff’ to be implemented by Jan. 1, 2026, when rice imports resume.
Agriculture Secretary Francisco Tiu Laurel Jr. earlier said that the initial tariff would definitely not stay at 15 percent.
But the agency would not recommend immediately reverting the rice tariff to 35 percent – as some agricultural groups demand – to prevent price pressures on retail prices.
The Philippines remains the world’s largest importer of rice, with imports projected to hit a record-high 5.5 million metric tons in 2026, according to estimates by the US Department of Agriculture’s Foreign Agricultural Service (USDA). /edv