News Details

Palay prices begin to recover after Marcos orders 2-month rice import ban

NPO

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August 17, 2025

MANILA – Farm gate prices of palay have started to rise in six of the country’s 13 key rice-producing regions, a week after President Ferdinand R. Marcos Jr. announced a two-month suspension of rice importation beginning September 1, according to the National Food Authority (NFA).

Agriculture Secretary Francisco P. Tiu Laurel Jr. said the government is carefully tracking how the market is adjusting to the temporary import halt, which was prompted by palay prices plunging to as low as ₱8 per kilo—well below the production cost of around ₱12 per kilo for efficient farmers.

“We are watching the market’s response very closely,” Laurel said. “If palay prices remain low during the ban, we may consider extending it or recommend tariff increases. If prices recover, the suspension may be shortened.”

The global rice market has weakened this year due to India’s lifting of its non-basmati rice export ban last September, bumper harvests in major exporters, softer demand, and reduced tariffs—all of which spurred Philippine importers to source heavily from Vietnam and other suppliers.

From April to May alone, importers brought in nearly 970,000 metric tons of rice—equivalent to almost three months of national consumption—even as domestic harvests reached historic levels. The Philippines’ palay output climbed to a record 9.08 million metric tons in the first half of 2025, putting the Department of Agriculture (DA) on track toward its full-year target of 20.46 million tons.

NFA Administrator Larry Lacson said the import suspension aims to lift farm gate prices to a level that ensures farmers earn sustainable incomes.

“The steady rise of palay price is a relief,” Lacson said. “We just hope that industry players avoid speculation and profiteering during this period.”

Price movements across regions

• Rising: Central Luzon, Bicol, Central Visayas, Southern Mindanao, Northern Mindanao (parts), and some provinces in Mindanao, with dry palay prices increasing by 0.3% to 2.6% since late July. Prices ranged from ₱16.98 per kilo in Central Luzon to ₱20.59 in Southern Mindanao.

• Stable: Southern Tagalog (₱16.52) and Western Visayas (₱17.60).

• Falling: Ilocos, Cagayan Valley, Eastern Visayas, Northern Mindanao (other provinces), and BARMM. Cagayan Valley posted the lowest average at ₱14.43, while BARMM had the highest at ₱21.67.

The DA said it will continue monitoring the market to assess whether the import suspension should be extended or adjusted to stabilize farmer incomes without unduly burdening consumers.

NPO News Team I DA-PR