FEF Presents Case for Retaining Reduced Rice Tariffs at Tariff Commission Hearing

FEF Presents Case for Retaining Reduced Rice Tariffs at Tariff Commission Hearing

The Foundation for Economic Freedom (FEF) reiterated its position to maintain lower rice tariffs during a public hearing organized by the Tariff Commission on March 28, 2025 via Microsoft Teams. 

The hearing was convened in response to a petition filed by the Samahang Industriya ng Agrikultura (SINAG), which seeks to increase the Most Favoured Nation (MFN) tariff rates on rice imports to 35% for ASEAN countries and 50% for non-ASEAN countries.

FEF Fellow Dr Roehlano Briones attributed the price reduction to Executive Order No. 62 which reduced rice tariffs. The retail price of rice dropped by 7.5%, equivalent to an average savings of P3.84 per kilo, between June 2024 and February 2025. Wholesale prices saw an even greater decline of 11.5%, or about P5.38 per kilo.

Representing FEF, economist and FEF Fellow Dr. Roehlano Briones argued that the reduction in tariffs has already yielded measurable benefits for Filipino consumers. Citing economic data from the Philippine Statistics Authority (PSA), Briones reported that the retail price of rice dropped by 7.5%, equivalent to an average savings of P3.84 per kilo, between June 2024 and February 2025. Wholesale prices saw an even greater decline of 11.5%, or about P5.38 per kilo.

Briones attributed these price reductions to Executive Order No. 62, which lowered import duties on rice from 35% to 15% starting July 2024, alongside a decline in global rice prices—using Thai White and Vietnam White rice as examples.

However, he cautioned that the price adjustments at the retail level have been slower due to normal market dynamics. “The market adjustment of supply and demand does not happen instantaneously,” Briones explained. “They occur with some delay, and the slowest to communicate the decline in price is probably the retail level.”

He further warned that reversing the tariff cut could raise farmgate prices, but would also likely lead to an increase in retail prices—missing a critical opportunity to bring rice prices closer to the P39–40 per kilo range, as seen in more stable global market conditions.

FEF’s position emphasizes consumer welfare and the importance of allowing time for the full effects of the tariff reduction to take hold. The organization urged policymakers to consider the long-term gains of a more affordable and accessible rice market, especially for ordinary Filipino households.

by Cesar Ilao III