THE head of the Samahang Industriya ng Agrikultura (SINAG) called for the reversal of the tariff reduction on imported rice under Executive Order (EO) 62, which took effect in July 2024, saying that this failed to lower prices of ric

In his January 21, 2025 letter addressed to President Ferdinand Marcos Jr., SINAG chairman Rosendo So said the policy, which was aimed at lowering retail rice prices as presented by National Economic Development Authority Secretary Arsenio Balisacan, has failed to achieve its intended goals.

Instead, it has led to significant revenue losses for the government and consequently affected support for local farmers.

The tariff reduction — from 35% to 15% — resulted in an estimated P15 billion in foregone revenues, which were originally allocated to support local rice farmers through the Extended Rice Tariffication Law.

So noted that, despite this, rice prices have not decreased as expected, leaving both the government and farmers struggling to meet production costs.

He emphasized the potential benefits of reallocating the P15 billion lost due to the tariff cuts, which could have been used to reduce the cost of producing palay (unhusked rice) by P2.90 per kilo, which could have, in turn, lowered local rice prices by P5/kilo.

He added that the National Rice Program’s budget was slashed by P10 billion, that will result in more revenue losses expected under EO 62, which could total P27 billion this year.

Further, So pointed out that global rice prices have dropped significantly over the past six months, with a reduction of US$146 per metric ton — from US$568 in July 2024 to US$422 in January 2025 — leading to a price decrease of P8.54 /k. This price drop has already exceeded the target reduction of P6-7/k expected under EO 62, he said.

So said it’s the local agriculture sector that’s supporting other government efforts to reduce rice prices, such as the “Rice-for-All” program and the “Food Security Emergency for Rice”, the RFA25 initiatives, adding that these programs show that rice prices can be reduced without resorting to tariff cuts.

So urged President Marcos to repeal EO 62 and reinstate the original tariff rates on rice — 35% for ASEAN countries and 50% for non-ASEAN countries — to better support local agriculture and safeguard the rice industry. (Eva Visperas)

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