DA: Higher rice tariff to take effect February

The Department of Agriculture (DA) has postponed an increase in rice tariffs until February, despite the recent resumption of rice imports. The planned tariff hike, from 15 percent to 20 percent, was initially scheduled for January 16th following the lifting of a temporary import ban on the staple crop.

Import Restrictions and Price Concerns

The delay, announced by Agriculture Secretary Francisco Tiu Laurel Jr., is intended to “avoid unnecessary market speculation,” according to a DA statement released alongside commitments secured from traders regarding palay (unhusked rice) buying prices. A four-month import moratorium, which began in September, was previously implemented after reports indicated palay farmgate prices had fallen as low as P8 per kilogram in some regions, a situation the DA linked to excessive imports.

Did You Know? In 2024, the rice import duty was reduced from 35 percent to 15 percent in an effort to combat rising inflation.

Import Volumes and Port Access

Rice importation resumed at the start of the year. As of early February, 178,397 metric tons (MT) of rice had arrived. Importers are currently considering a volume of 300,000 MT for February, following consultations with the DA. Applications for necessary import clearances are now being accepted.

To address congestion issues reported by importers, the Bureau of Plant Industry (BPI) has expanded the number of ports authorized to receive rice shipments. Two additional ports – Bataan and Poro Point – have been added, bringing the total to 19. These include Subic, Batangas, Manila International Container Port, Port of Manila, Cebu, Cagayan de Oro, Iligan, Davao, General Santos, Tacloban, Tabaco, Zamboanga, Bacolod, Iloilo, Tagbilaran, Dumaguete, and Calbayog.

Expert Insight: The DA’s decision to delay the tariff increase suggests a prioritization of market stability and a cautious approach to balancing the interests of both farmers and consumers. Managing import volumes and ensuring adequate port capacity are key components of this strategy.

Shipping Deadlines and Future Considerations

The BPI has stipulated that all rice shipments must arrive by the end of February to avoid coinciding with the domestic harvests in March and April. Shipments arriving after this deadline will be denied release and returned to the source country at the importer’s expense. Data from the BPI indicates that the country’s rice imports reached 3.39 million MT in 2025, a decrease from the record 4.8 million MT imported in 2024, a drop attributed to the earlier import moratorium.

Frequently Asked Questions

What was the original date for the rice tariff increase?

The rice tariff increase was originally scheduled to take effect on January 16th.

Why did the DA implement an import moratorium on rice?

The import moratorium was implemented following reports that palay farmgate prices had dropped to as low as P8 per kilogram in some areas, which the DA attributed to excessive imports.

How many ports are now authorized to receive rice imports?

Currently, 19 ports are authorized to receive rice imports, including the recently added ports of Bataan and Poro Point.

How might the February deadline for rice shipments impact importers and the overall supply chain?