Rice Tariffication and Food Prices

How the Philippines replaced rice import quotas with tariffs in 2019 to lower prices, the effects on consumers and farmers, and the 2023-24 rice price crisis.

Rice is the Philippines’ staple food.

Before 2019

The state-run National Food Authority controlled rice imports through quotas.
Rice prices were among the highest in Asia.

Rice Tariffication Law

In 2019, a law replaced quotas with a 35 percent tariff on imports from Southeast Asia, allowing private imports.

Effects

Retail prices fell initially.
Farmers faced lower prices and competition.
Tariff revenue funded a Rice Competitiveness Enhancement Fund for machinery and seeds.

2023-24 crisis

When global rice prices spiked after India’s export ban in 2023, Philippine prices rose sharply.
The government imposed a price cap in 2023 and cut the rice tariff to 15 percent in 2024.

Big importer

The Philippines became one of the world’s largest rice importers, mainly from Vietnam.

Economic lesson

Tariffs are more transparent and flexible than quotas, but food policy must balance consumers and farmers.

The Indian ban's ripple

When India restricted rice exports in 2023, a Manila family paid noticeably more for rice, showing how one country's policy affects another.

Thinking import quotas protect consumers

Quotas kept Philippine rice prices among Asia's highest.

Key takeaways

The Philippines replaced rice quotas with tariffs in 2019.
Prices fell initially, but farmers faced competition.
India's 2023 export ban raised Philippine prices.
The tariff was cut to 15 percent in 2024.