The Federation of Free Farmers (FFF) blamed government’s policy of unlimited rice importation, coupled with its decision to reduce tariffs to 15% last June 2024, for the severe drop in palay (unhusked rice) prices in many parts of the country.
“Based on Bureau of Customs (BoC) data, almost 4.8 million tons of rice arrived in 2024, making the country the world’s biggest rice importer. Another 331,000 tons entered last January, resulting in a supply glut coinciding with the start of the dry season harvest,” the FFF said in a statement.
Farmers in Mangaldan, Pangasinan have reportedly postponed selling their palay due to low buying prices of traders. In San Jose, Occidental Mindoro, prices for newly harvested palay have dipped to as low as PhP13 per kilo. Clean-and-dry palay is at Php19 per kilo, with traders reportedly hesitating to buy stocks due to the influx of imported rice in the market.
At the same time, the National Food Authority (NFA) has not been procuring clean-and- dry palay from farmers at the announced price of PhP23, since its warehouses are still full of stocks from previous harvests.
“Some 5,000 sacks in Sablayan and another 3,700 sacks in San Jose have reportedly been stored – and deteriorating – in NFA bodegas in these towns since 2022,” the FFF disclosed.
The group added that traders are hedging against a continued drop in rice prices due to the aggressive implementation of the maximum suggested retail price (MSRP) for rice and the disposal of NFA rice through local governments and KADIWA outlets at a subsidized rate of PhP33 per kilo.
“We urge DA to address the emerging problems of farmers with the same vigor and persistence with which it has been cutting rice prices for consumers,” said Raul Montemayor, FFF national manager.
The FFF noted that import prices for Vietnamese rice have decreased by over 30% compared to their peak levels in January 2024. The landed cost of rice with 5% brokens, inclusive of freight and insurance and 15% tariff, averaged only PhP 28 per kilo in January 2025, which is significantly lower than current retail prices and the MSRP.
The FFF pressed for the restoration of the 35% tariff on imported rice in order to influence local traders to buy farmers’ palay at better prices.
“The landed cost of rice with 5% brokens from Vietnam will rise to PhP33 per kilo if we reinstate the 35% tariff. If we add Php 15 for other costs and trading margins all the way to retailers, imported rice could still be sold at Php 48, well below the current MSRP of PhP52 per kilo,” added Montemayor.
