July 8, 2025 | 07:33 GMT +7

  • Click to copy
Thursday- 10:20, 06/06/2024

Philippines rice tariff cut will benefit Vietnam, not farmers

(VAN) The Philippines, the world's top rice importer, is moving to cut tariffs on the staple food from 35% to 15% through 2028 to ease the country's inflation woes.
Imported rice from Vietnam being unloaded in Surigao City port. Photo: Inquirer.

Imported rice from Vietnam being unloaded in Surigao City port. Photo: Inquirer.

But analysts worry the move could benefit foreign producers such as Vietnam and leave Filipino farmers struggling to compete.

The decision was announced Tuesday, following a meeting of an inter-agency panel headed by President Ferdinand Marcos Jr. The move will lower prices for rice to "make it more affordable," Arsenio Balisacan, head of the National Economic and Development Authority, said in a statement.

Rice makes up 9% of the Philippine consumer price index, but the statement said the staple accounted for more than half the headline inflation rate over the past three months. Prices rose for the third straight month in April, climbing 3.8% on the year.

"Reducing rice tariffs is expected to bring down rice prices for consumers, while supporting domestic production through tariff cover and increased budgetary support to improve agricultural productivity, especially as global rice prices remain elevated," said Balisacan.

Balisacan said the Marcos administration is attempting to hold down prices for poor Filipinos by cutting the duty on imported rice to as low as 29 pesos ($0.49) per kilogram within the year.

When Marcos was in charge of the agriculture department in August last year, he imposed a price cap on rice to stifle inflation, a move economists said was ineffective. He lifted the price cap a month later.

According to Balisacan, the president will issue an executive order cutting the tariff. At the same meeting, the Philippines announced that tariffs on corn, pork and mechanically deboned meat will remain unchanged through 2028.

Miguel Chanco, chief emerging Asia economist at U.K.-based Pantheon Macroeconomics, noted that the move will make imported rice cheaper than domestic products, "which in turn will undoubtedly have a negative impact on farmers' incomes," he said. "The flip side, on a macro basis, is that this should help significantly -- once implemented -- in pulling headline inflation down, assisting the purchasing power of all Filipinos," Chanco told Nikkei Asia.

He said that the change would be a "huge benefit" to rice exporters in Asia, such as Vietnam and Thailand, but that India will continue to miss the boat due to the country's export curbs.

Robert Dan Roces, chief economist at Security Bank in Manila, called the lower duties a "double-edged sword," since consumers will benefit while leaving farmers facing stiff competition from cheaper imports. "This might push some to diversify crops, potentially disrupting established practices. Government support programs, such as subsidies and improved farm efficiency, are crucial to cushion the blow for farmers," he told Nikkei Asia.

Roces, however, cautioned that such a move could leave rice exporters rethinking their fortunes in the Philippines. "Rice exporters like Vietnam may see lower sales to the Philippines, but this could also nudge them to explore new markets, or ... producers like Vietnam might offer higher-value types of rice [to Philippine importers]," he added.

Lam Hung

(Nikkei Asia)

Conservation at Chu Yang Sin National Park: [2] Protecting the Central Highlands' treasures

Conservation at Chu Yang Sin National Park: [2] Protecting the Central Highlands' treasures

(VAN) The management of Chu Yang Sin National Park (Dak Lak) has made significant efforts to preserve its natural richness, as the park is essential for the conservation of nature and climate change adaptation.

Vietnam to welcome 14 African Ministers to get insights on OCOP program

Vietnam to welcome 14 African Ministers to get insights on OCOP program

(VAN) On July 15, Ministry of Agriculture and Environment will coordinate with FAO to organize a high-level interregional forum on sharing experiences on the OCOP model.

Conservation at Chu Yang Sin National Park: [1] The most biodiverse haven in the Central Highlands

Conservation at Chu Yang Sin National Park: [1] The most biodiverse haven in the Central Highlands

(VAN) Chu Yang Sin National Park holds an important position in Vietnam’s system of special-use forests and is considered the most biodiverse area in the Central Highlands.

70% of crop residues burned or discarded, causing air pollution in Vietnam

70% of crop residues burned or discarded, causing air pollution in Vietnam

(VAN) 70% of crop residues are either burned or discharged into the environment, causing severe air pollution in rural areas. Department of Crop Production and Plant Protection proposes reuse solutions.

Public-private partnership for water conservation linked to headwater forests

Public-private partnership for water conservation linked to headwater forests

(VAN) The 'Water of Life: Conserving Water Resources – For a Greener Vietnam' program is a public-private partnership initiative focused on the headwater forests and water sources conservation, while enhancing awareness through nature-based educational models.

Prime Minister witnesses first shipment of pangasius, basa, and tilapia exported to Brazil

Prime Minister witnesses first shipment of pangasius, basa, and tilapia exported to Brazil

(VAN) Vietnam's Prime Minister and the President of Brazil witnessed the announcement ceremony of the first shipment of pangasius-basa and tilapia exported to Brazil, and the first shipment of beef exported to Vietnam.

PAN Group shares its journey of building an ecosystem at the global forum

PAN Group shares its journey of building an ecosystem at the global forum

(VAN) PAN Group CEO Nguyen Thi Tra My shared her aspiration to build an agricultural ecosystem at the 2025 Global Summit of Women.

Read more