November 13, 2025 | 12:00am
MANILA, Philippines — Another group of farmers has criticized the government’s recently issued variable rice tariff scheme, calling the measure defective and ineffective in protecting local farmers from cheap imports once the current import ban is lifted.
In a statement yesterday, the Federation of Free Farmers (FFF) said Executive Order 105 was issued without consultations with stakeholders and accused government economic managers of deliberately timing the measure to avoid legislative scrutiny.
“The economic managers have habitually ignored the law and played around with the rules to get what they want. They have misled the President into signing defective executive orders in the process,” said FFF national manager Raul Montemayor.
Under EO 105, issued last Nov. 7, the government extended the 15 percent tax on imported rice until the end of the year and established a body that will monitor and adjust rice import taxes by five percentage points for every five percent change in international prices.
The group warned that the variable tariff would not prevent cheap imports from flooding the market, pointing to the sharp drop in palay farmgate prices following last year’s reduction of tariffs from 35 percent to 15 percent.
It said prices fell to as low as P8 per kilogram, well below average production costs of P14.50 per kg.
“Imports will remain at their cheap levels as in 2025 because any subsequent change in international prices will simply be offset by an adjustment in tariffs. The net effect will be basically zero, and cheap imports will continue to depress palay prices,” Montemayor added.
The FFF also expressed doubts about whether future tariff adjustments can be implemented promptly, given the consultation and procedural requirements under existing law.
It further warned of possible trade disputes, noting that similar variable tariff schemes have been ruled illegal by the World Trade Organization and that other countries could retaliate with their own tariffs or import restrictions on Philippine products.
Earlier, the Samahang Industriya ng Agrikultura (SINAG) also criticized the same order, citing the decision to retain the reduced 15 percent rice import tariff as no longer justified as global prices have stabilized.
SINAG called on the government to restore the previous 35 percent tariff rate, noting that international rice prices have fallen significantly and that imported rice would remain affordable even at the higher rate.
