Marcos suspends rice importation amid low palay prices

(UPDATE) NEW DELHI, India — President Ferdinand Marcos Jr. ordered a 60-day suspension of all rice importation starting Sept. 1 to protect local farmers reeling from low prices for palay, or unmilled rice.

Presidential Communications Office (PCO) Secretary Dave Gomez made the announcement on Wednesday, following a meeting between Marcos and members of his Cabinet on the sidelines of his five-day state visit here.

“The president issued the directive after consulting with Cabinet members and upon the recommendation of Agriculture Secretary Francisco Tiu Laurel Jr.,” Gomez said.

The PCO chief said the temporary importation halt is meant to help stabilize local palay prices and ensure farmers are not undercut by the influx of cheaper imported rice.

Asked about potential tariff adjustments, Marcos believes it is “not yet time” to discuss possible increases in tariffs on imported rice.

“We will still see if we need to resort to that. Right now, the decision is to suspend all rice importation for 60 days beginning Sept. 1. That’s the order of our president to help farmers,” he said in English and Filipino.

Sen. Francis Pangilinan lauded the decision to suspend rice importation during harvest season, calling it a victory for farmers.

“We thank the administration for heeding the call of our rice farmers,” he said in Filipino.

With the suspension taking effect in September, Pangilinan urged immediate aid for farmers now forced to sell palay at only P5 to P9 per kilogram.

He called for the full implementation of the Sagip Saka Law and use of food funds in the 2025 budget to buy rice directly from farmers.

The Department of Agriculture (DA) earlier recommended to Marcos the temporary suspension of rice importation and an increase in tariffs on imported rice to protect local farmers.

DA officials on Wednesday welcomed the President’s decision to suspend rice imports.

Under Republic Act 12078, or the amended Rice Tariffication Law implemented last December, the president may suspend importation when there is an excessive supply in the market. This could go on for a specified period or volume until rice supply and rice prices stabilize.

DA spokesman Arnel de Mesa said the move is a “welcome reprieve” for local palay farmers, especially with the approaching harvest season that would peak in September to October.

“[It’s] very timely, and we are grateful for the immediate response of our president to the department’s recommendation for a temporary halt in the importation [of rice] so our farmers can recoup,” he said in Filipino.

Tiu Laurel described the President’s decision to temporarily suspend importation while holding off a tariff hike as a “measured response” to the challenges faced by local farmers.

The DA earlier said that it recommends raising rice tariffs from the current 15 percent to 25 percent, and later to 35 percent, as a gradual increase would prevent shocks in the market.

President Marcos previously ordered reducing rice tariffs to 15 percent from 35 percent through Executive Order 62, enacted in July last year, to address the high prices of rice at the time.

Tiu Laurel said suspending imports while delaying tariff hikes allows the government to immediately act to protect farmers without causing other market issues.

“The suspension is a more calibrated action — one that we can quickly reverse if needed,” said the DA chief. “It gives us the flexibility to act fast to protect both our farmers and our consumers.

A premature tariff hike, on the other hand, could backfire and would take much longer to undo.”

Walking a tightrope

“We are walking a tightrope here. The stakes are high for both our farmers and the Filipino people, so it’s crucial that we strike the right balance,” he said.

De Mesa added that the move serves as an assurance to palay farmers that the farmgate prices of palay would not drop to unreasonable prices when the wet season harvest comes.

The spokesman also reiterated President Marcos’ warning during his recent State of the Nation Address that the government would go after traders who would take advantage of farmers by buying palay at unreasonable prices.

De Mesa said the temporary import suspension would likely be done through halting the release of sanitary and phytosanitary import clearances, but said they would wait for the announcement and document from the Office of the President regarding the mechanisms that would be put in place.

Tiu Laurel said the DA will use the two-month period to study the effects of the import suspension on the prices of palay and the wider market.

“If this strategy leads to higher farmgate prices and better income for our farmers, we may no longer need to raise the tariff,” he said.

“What matters most is that we make a well-informed decision because millions of lives depend on the outcome,” he added.

Speaker Ferdinand Martin Romualdez on Wednesday expressed support for the move to suspend rice importation for 60 days starting Sept. 1.

“This is more than just a policy shift. This is about standing up for the Filipino farmers — about telling the world that we will not allow those who feed us to be left behind,” Romualdez said in a statement.

He reiterated his commitment to pass House Bill 1, or the proposed Rice Industry and Consumer Empowerment Act, which aims to reform the National Food Authority.

Albay 3rd District Rep. Raymond Adrian Salceda, chairman of the House Special Committee on Food Security, also expressed support for the President’s decision.

‘No real benefit’

But Samahang Industriya ng Agrikultura Executive Director Jayson Cainglet argued that the decision to suspend rice imports “offers no real benefit” to local farmers.

He said importers can easily work around the 60-day suspension by advancing or delaying their shipments.

He added that the suspension also comes at a time when there is no immediate need for new imports since warehouses — including those of the National Food Authority — are already at full capacity.

Cainglet said the move would do little to stabilize the domestic rice market or protect consumers, adding that the problem of low palay prices and farmers incurring losses will remain with the 15-percent reduced rice tariff rate still in place.

He reiterated that the most effective approach to address the issue as of the moment is to raise rice import tariffs to 35 percent for imports from members of the Association of Southeast Asian Nations (Asean) and to 50 percent for imports from non-Asean members.

He asserted that this would discourage excessive imports, stabilize farmgate prices of local palay and create a fair market for local farmers.

WITH REINA C. TOLENTINO AND PHILIPPINE NEWS AGENCY