Philippines declares food security emergency to tame rice prices

The Philippines on Monday declared a food security emergency to bring down rice prices, which officials said have remained high despite hefty tariff cuts.

"This emergency declaration allows us to release rice buffer stocks held by the National food Authority to stabilize prices and ensure that rice, a staple food for millions of Filipinos, remains accessible to consumers,” Agriculture Secretary Francisco Tiu-Laurel said in a statement.

The "extraordinary” rise in local rice prices, despite lower global market costs and a reduction in tariffs last July, prompted the move, according to the Agriculture Department.

The staple grain accounts for about 10% of the Southeast Asian nation’s inflation basket. Sharply higher rice costs fanned Philippine inflation to beyond the central bank’s 2% to 4% target in 2022 and 2023.

In 2024, the Philippines cut rice import tariffs to 15% from 35%, with the reduced rate in effect until 2028.