Monthly rice import volume limit mulled as palay prices weaken

The Department of Agriculture is considering limiting monthly rice import volumes from June to August to balance supply and farm gate price concerns as palay prices weakened in some key producing areas.

Agriculture Secretary Francisco Tiu Laurel said in a statement that this is part of the options being considered by the DA to prevent a price collapse while ensuring adequate domestic supply.

The agency is targeting a farmgate price of PHP22 per kilo for the September–November harvest period, which it sees as a crucial recovery window for farmers.

Tiu Laurel Jr. said the agency is stepping up market interventions as palay prices weaken in several major producing provinces, even as the main harvest season draws close to completion.

On the supply side, Secretary Tiu Laurel reiterated that rice imports remain necessary but must be carefully managed to avoid further depressing local prices. He noted that earlier import controls helped ensure that about 70 percent of the harvest was sold at favorable levels.

During a consultative meeting with rice industry stakeholders on Monday, April 27, the DA noted that with about 77 percent of the national harvest already in, fresh palay prices have slipped to PHP16–PHP17 per kilo in isolated areas in Nueva Ecija, Pampanga, Isabela, and Cagayan.

But the downturn, the DA pointed out, is not nationwide. Farmgate prices in areas like Palawan remain significantly higher at PHP23–PHP24 per kilo, pointing to localized price pressure rather than a systemic collapse in the market.

Already, the National Food Authority has increased its buying price for dry palay to as much as P30 per kilo and will intensify procurement in areas where prices have sharply declined to help stabilize the palay market. The agency is also rolling out a direct purchase order system that will allow farmers to sell directly to the NFA before their actual harvest.

The DA is also pushing for expanded storage and warehouse capacity, including strategic stockpiling to secure supply up to 2027. Current national rice inventory stands at roughly 70 days of consumption.

Tiu Laurel assured stakeholders that the Bureau of Plant Industry will tighten accreditation standards.

Persistent logistical bottleneck, particularly the shortage of hauling trucks—which continues to delay deliveries and limit farmers’ access to government buying stations. This logistical problem will be partly addressed by the procurement of additional 150 trucks by NFA this year.

At the same time, the government is exploring policy options such as blending local and imported rice to help stabilize retail prices while still prioritizing domestic production, with stakeholders invited to propose blending ratios favoring local output.

“We want to strike a balance among all stakeholders in the rice value chain, including consumers, especially amid climatic and geopolitical challenges,” Tiu Laurel said.

Tensions in the Middle East had raised the cost of fertilizer and fuel for farm machineries while a new El Niño episode threaten upcoming crop harvest and livestock production.

–