The Department of Agriculture (DA) reported Saturday that farm gate prices of palay—or unhusked rice—have started to climb just a week after President Ferdinand “Bongbong” Marcos Jr. announced a two-month suspension of rice importation beginning September 1, 2025.
Citing data from the National Food Authority (NFA), the DA said that farm gate prices—the amount farmers receive for their crops before transport, handling, and marketing costs—have increased in six of the country’s 13 major rice-producing regions.
NFA monitoring showed that traders’ buying prices for dry palay rose between 0.3% to 2.6% ahead of the import suspension in Central Luzon (including Nueva Ecija), Bicol, Central Visayas, and parts of Mindanao. Average farm gate prices ranged from ₱16.98 per kilo in Central Luzon to ₱20.59 in Southern Mindanao.
Prices, however, remained flat at ₱16.52 in Southern Tagalog and ₱17.60 in Western Visayas. In contrast, sharp drops were recorded in Ilocos, Cagayan Valley, Eastern Visayas, Northern Mindanao, and BARMM, with the lowest at ₱14.43 per kilo in Cagayan Valley and the highest at ₱21.67 in BARMM.
Agriculture Secretary Francisco Tiu Laurel Jr. said the government is closely monitoring market reactions to the import suspension, which was triggered by reports of palay prices falling as low as ₱8 per kilo—far below the estimated production cost of ₱12 per kilo for the most efficient farmers.
“If palay prices remain low during the ban, we may consider extending it, or recommend that President Marcos increase tariffs. And if prices of palay rise, we could shorten the ban,” said Tiu Laurel.
Global rice prices have been on a downtrend in 2025 due to India lifting its export ban on non-basmati rice, bumper harvests in major exporting countries, weaker global demand, and reduced tariffs—factors that have encouraged heavy rice imports, particularly from Vietnam.
Between April and May alone, nearly 970,000 metric tons of rice were imported—enough to cover almost three months of national consumption—despite the Philippines posting record palay harvests.
The country’s palay output reached 9.08 million metric tons in the first half of 2025, putting the DA on track toward its target of 20.46 million metric tons—an all-time high.
NFA Administrator Larry Lacson stressed that the objective of the import suspension is to stabilize farm incomes by lifting palay prices.
“The objective of the import ban is to allow the price of palay to be at a level that will give the farmers income, and the steady rise of palay price is a relief. We just hope that the other players in the industry will do their share by not taking advantage by spreading speculations,” Lacson said.