MANILA – Farmgate prices of palay (unhusked rice) began to rebound after the Philippine government’s four-month import halt, the Department of Agriculture (DA) said Friday.
As of Jan. 30, dry palay rose to PHP21.52 per kilogram, while fresh palay increased to PHP18.42/kg.
Data from the Philippine Statistics Authority show the rebound followed a decline from late 2024 to 2025, after strong prices in 2023 and the 2024 dry season harvest.
In a statement, DA Secretary Francisco Tiu Laurel Jr. said government intervention helped counter the effects of “excessive” rice imports in previous years, which drove down palay buying prices.
“Excess importation undermines the profitability of rice farming by depressing palay prices at harvest time and discouraging production,” he said.
In 2024, the Philippines recorded about 4.8 million metric tons of rice imports, which was “about 1 million to 1.2 million metric tons more than what the country actually needs,” Tiu Laurel said.
The surge in imports led to domestic oversupply and pushed farmgate prices down in 2025.
National Food Authority monitoring showed prices fell to as low as PHP13.38/kg during the October peak harvest.
Sporadic reports also cited traders offering PHP8 and even PHP6 per kilo.
Tiu Laurel stressed that imports should cover real supply gaps, not exceed demand.
“Striking the right balance ensures gains for everyone in the rice value chain -- farmers, traders, millers, and consumers -- while safeguarding national food security,” he said.
To balance farmer protection and consumer welfare, the DA will calibrate policies to maintain sufficient buffer stocks and time imports strategically to ease retail inflation.
Earlier, Tiu Laurel announced plans to impose quantitative restrictions to encourage traders to invest in local palay production, pending enactment of the proposed Rice Industry and Consumer Empowerment (RICE) Act.
Under the proposal, importers would receive allocations in exchange for procuring local palay or rice.
While the local procurement-to-import allocation ratio is still under review, Tiu Laurel assured industry stakeholders of close consultation.
The DA plans to roll out at least a version of the proposal in the second half of the year. (PNA)