The Philippine Department of Finance has proposed reducing import tariffs to lower domestic rice prices. (Source: Financial Times)

Finance Secretary Benjamin Diokno said the ministries of Finance and Economic Planning are proposing to reduce the rice import tariff from 35% to 0-10%.

Under the revised mechanism issued in 2021, import tariffs on rice from countries outside Southeast Asia have been reduced from 40-50% to 35%, equal to the rate applied to suppliers within the region.

The ministries also encouraged the private sector to promptly import rice and expedite customs clearance with qualified importers.

Previously, in August 2023, the Philippine Department of Agriculture recommended importing an additional 500,000 tons of rice around November 2023-January 2024, to compensate for possible production declines due to the extreme weather phenomenon El Nino.

The Philippines is one of the largest rice importers in the world.

Last week, the country imposed a price cap to protect consumers from soaring rice prices amid a surge in traders hoarding.

Philippine rice price inflation hit 4.2% in July, the highest since 2019. Inflation unexpectedly rose for the first time in seven months to 5.3% in August, mainly due to higher food prices and transportation costs.