Rice Import Suspension Hurts Local Farmers’ Income
Local farmers have already lost P54.5 billion in the first half of 2025, according to local leaders. They urged the government to tighten controls on rice imports, which continue to undermine the income of Filipino producers. This rice import suspension has been a contentious topic as farmers struggle to recover from falling palay prices.
Recently, President Ferdinand Marcos Jr. ordered a two-month suspension on rice imports starting September 1, aiming to shield farmers from the impact of low palay prices. However, the Federation of Free Farmers (FFF) warned that this rice import suspension alone won’t be enough to protect local producers, especially with the import tariff still set at only 15 percent instead of the previous 35 percent.
Impact of Tariff Reduction on Farmers’ Losses
FFF chairman Leonardo Montemayor, who once led the Department of Agriculture, explained that farmgate palay prices have dropped as low as P8 per kilo—a 31% plunge compared to last year. This steep decline has resulted in an estimated P54.5 billion loss in farmers’ income during the first six months of 2025. Montemayor detailed to a radio station that producers lose about P24,000 per hectare, stressing, “Malaki po ‘yan.”
He emphasized the urgent need to reinstate the 35 percent tariff on imported rice to ease the burden on local farmers. Montemayor pointed out that the lower tariff, implemented through Executive Order No. 62 last year, has already cost the government P27 billion—funds that could have supported rice industry modernization.
Oversupply and Late Suspension Measures
The FFF explained that the tariff reduction triggered an oversupply of imported rice, which caused the sharp drop in palay prices. Montemayor acknowledged the President’s good intentions, saying, “Maganda ang layunin ng Pangulo,” but stressed that the suspension came too late to effectively help farmers. He warned that importers might rush to bring in shipments before the suspension begins on September 1, worsening the problem.
Montemayor advocated for the immediate reinstatement of the 35 percent tariff alongside the suspension to discourage excessive imports and help farmers avoid sinking further into debt.
Balancing Rice Prices and Market Control
On rice prices, FFF national manager Raul Montemayor said raising tariffs won’t necessarily increase consumer prices if the government clamps down on profiteering. He noted that before the rice crisis, the margin between import costs and retail prices was about P13 per kilo. Recently, this margin has widened to more than P20 per kilo, despite international rice prices dropping.
These inflated trading margins suggest that better regulation of market players could protect both farmers and consumers without hiking prices.
For more news and updates on rice import suspension, visit Filipinokami.com.
