THE suspension of rice imports for 60 days is not likely to drive inflation due to ample supplies of the staple grain, the Department of Economy, Planning, and Development (DEPDev) said.
“Even if we suspend import during the harvest — that is, September and October — there will be enough supply. The availability of rice is close to what it is during normal times. It’s not likely going to cause increases in inflation,” Economy Secretary Arsenio M. Balisacan said at a briefing on Thursday.
On Wednesday, President Ferdinand R. Marcos, Jr. ordered a 60-day suspension of rice imports starting Sept. 1 to provide relief to farmers who have been offered low farmgate prices for their grain, and are counting on good prices for the harvest.
Inflation slowed to a near six-year low in July at 0.9% as utilities and food costs continued to ease. For the first seven months, inflation averaged 1.7%, running ahead of the Bangko Sentral ng Pilipinas forecast of 1.6% for 2025.
Mr. Balisacan cited estimates that supply will remain sufficient even if the government pauses imports for more than 40 days.
The Philippines is the world’s biggest rice importer, having brought in 2.44 million metric tons (MMT) at the end of July, according to the Bureau of Plant Industry.
In 2024, the Philippines imported 4.7 MMT, with volumes expected to exceed that level this year.
Asked if economic managers have reached a consensus on whether to raise the rice import tariff to the original 35% level set by the Rice Tariffication Law of 2019, Mr. Balisacan said they are still studying “long term” measures.
“We want a permanent solution — one that is administratively affordable and predictable — so that farmers can be protected from sharp price swings. It’s okay to have some fluctuations; that’s expected due to seasonality,” he said.
Mr. Balisacan also cited circumstances that are different from when the government slashed the import tariff to 15% last year
“When the rice tariff was reduced from 35% to 15%, world prices were quite high, close to $600 per metric ton. Now it’s down to almost $450-$490 per metric ton. It’s a 31% drop in world prices,” he said.
“Of course, we have to keep watching and looking vigilant because world prices can change suddenly as well and we need to make sure that our policy is flexible enough to address all these changes in the marketplace,” he said. — Aubrey Rose A. Inosante