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Why rice import suspension won’t be enough for PH farmers


Why rice import suspension won’t be enough for PH farmers

RICE composite image from INQUIRER file/stock

Local farmers already lost P54.5 billion in the first six months of 2025, the Federation of Free Farmers (FFF) said as it asked the government to control rice imports, which are hurting local producers.

This week, President Ferdinand Marcos Jr. ordered the suspension of rice importation for two months starting Sept. 1 “to protect local farmers reeling from low palay prices.”

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READ: Rice importation suspended for 2 months starting Sept. 1

But with the tariff staying at 15 percent instead of 35 percent, FFF chairman Leonardo Montemayor, who previously headed the Department of Agriculture, said the suspension may not be enough.

As the FFF said in a statement, farmgate prices of palay already fell to as low as P8 a kilo, down 31 percent from prices a year ago, resulting in an estimated P54.5 billion drop in local farmers’ income in the first six months of 2025.

READ: Imports’ continuing impact on PH farmers: Like dislocating the kneecaps

Montemayor eventually explained to radio station DWIZ that for every hectare, producers lost P24,000. “Malaki po ‘yan (That is a lot),” he said while pointing out the need to reinstate the 35 percent tariff on imported rice.

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He claimed that because of the low tariff, which is the result of Executive Order No. 62 that Marcos signed last year, the government already lost P27 billion, which could have been used for rice industry modernization programs.

READ: DA proposal to Marcos: Suspend rice importation, reinstate 35% tariff

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As explained by the FFF, the steep drop in farmgate prices of palay was caused by the decision to lower the tariff on imported rice, which eventually led to an oversupply.

“Maganda ang layunin ng Pangulo (The President has a good intention),” Montemayor said. However, he pointed out that if the government seeks to address the low farmgate price of palay, the suspension is already “late.”

He stressed that the suspension should have been made effective immediately, together with the reinstatement of the 35 percent tariff because what importers will do now is advance the arrival of their shipments before Sept. 1.

READ: Rice imports: Group says PH farmers, consumers both lose

Montemayor explained that bringing back the tariff to 35 percent will discourage over-importation and eventually help local producers already sinking into debt because of their immense losses.

As to rice prices, FFF national manager Raul Montemayor said they need not increase even if the tariff is raised, pointing out that the government only has to effectively control profiteering among market players.



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This, as the trading margin between import costs and retail prices averaged only about P13 a kilo before the rice crisis, he said. However, in recent months, the margin ballooned to more than P20 a kilo despite the decline in international rice rates.



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