Import halt lifts palay prices

The government’s temporary freeze on rice imports has begun to push farmgate palay prices upward, according to the Department of Agriculture.

Latest figures showed dry palay fetching ₱21.52 per kilogram as of Jan. 30, while fresh palay rose to ₱18.42 per kilo, signaling a turnaround from the slump that followed heavy import arrivals last year.

Records from the Philippine Statistics Authority indicated that prices had weakened from late 2024 into 2025 after strong returns in 2023 and during the 2024 dry harvest.

Agriculture Secretary Francisco Tiu Laurel Jr. attributed the earlier decline to what he described as excessive import volumes.

“Excess importation undermines the profitability of rice farming by depressing palay prices at harvest time and discouraging production,” he said.

The Philippines brought in about 4.8 million metric tons of rice in 2024—roughly 1 million to 1.2 million metric tons beyond actual requirements, Tiu Laurel noted. The oversupply weighed heavily on domestic buying prices the following year.

Monitoring by the National Food Authority showed farmgate prices plunging to as low as ₱13.38 per kilo during the October peak harvest, with scattered reports of traders offering ₱8 or even ₱6 per kilo.

Tiu Laurel emphasized that imports should only fill genuine supply gaps.

“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.

The DA said it will continue calibrating its import policies to maintain sufficient buffer stocks while cushioning consumers from retail price spikes.

Tiu Laurel earlier proposed quantitative limits under the planned Rice Industry and Consumer Empowerment Act, which would tie import allocations to the purchase of locally produced palay or rice. Consultations are ongoing, with an initial rollout eyed in the second half of the year.