<p>Due to the increase in prices of basic agricultural commodities in 1995, food price stability and food security emerged as a major policy concern in the Philippines. This paper argues that the sharp increases in prices of rice; largely the choice and management of policy instrument have caused corn and sugar. It argues that highly protectionist policy on tariffs imposed on sensitive agricultural products is not sustainable over a prolonged period of time. Moreover, bidding out of the right to import while retaining quotas, can minimize gross errors in timing and amount of importation.</p>