The Department of Agriculture (DA) is pushing for urgent policy changes to protect local rice farmers as farmgate prices of palay (unhusked rice) have plunged amid record-high domestic production and the influx of cheap imports.
Agriculture Secretary Francisco Tiu Laurel Jr. said President Ferdinand Marcos Jr. is seriously considering suspending rice importations and raising tariffs to stem the entry of low-cost foreign rice and stabilize the local market.
According to Laurel, raising the current 15-percent rice import tariff — potentially to 25 percent and eventually to 35 percent — would help rein in excessive imports and generate much-needed revenues for programs aimed at strengthening Filipino farmers’ competitiveness.
“This is a delicate balancing act between our duty to protect our rice farmers from those who undervalue their produce and ensuring that consumers have access to affordable rice,” the DA chief said.
The call comes as the farmgate prices of palay have plunged to as low as P8 to P10 per kilo — well below the production cost of P12 to P14 per kilo — due to the surge in imported rice. The DA said the landed cost of 5-percent broken imported rice is now down to about P35 per kilo or even lower, pulling market prices down and squeezing farmer margins.
Laurel acknowledged the contribution of Quezon Rep. Mark Enverga, the House Agriculture Committee chairman, who has expressed support for the proposed amendments to the Rice Tariffication Law (RTL).
The proposed amendments aim to restore the regulatory powers of the National Food Authority (NFA) and give the DA greater flexibility in managing the rice supply and prices.
The RTL, passed in 2018, liberalized rice importation but retained provisions allowing the President to suspend imports under exceptional circumstances. One such provision —Section 3, as amended by Republic Act 12078 — permits a temporary import ban when excessive supply causes an extraordinary drop in domestic prices.
While supportive of tariff adjustments, the agriculture chief emphasized that any move must be phased and carefully timed to avoid disrupting the rice value chain and hurting consumers. Still, the final decision rests with President Marcos, he said.
Last year, in response to soaring global rice prices, Marcos ordered a tariff reduction from 35 percent to 15 percent. That move, along with DA-imposed price ceilings on imported rice varieties, helped slash retail prices from over P60 per kilo to around P43 today.
However, global market conditions have since changed. Bumper harvests, the lifting of India’s export ban, and a record 9.08-million metric tons of palay produced locally in the first half of 2025 have all driven prices down.
The Vietnamese DT8 variety, widely imported by the Philippines, now sells for just $470 per ton, down from over $700 previously.
As the price war intensified, the DA reiterated the need for amendments to the RTL that would allow the NFA to play a more active role in stabilizing both palay and rice prices. Laurel said reinstating the NFA’s authority to release stockpiles and procure rice from local farmers would enable more targeted interventions.
“When its regulatory powers are restored, the NFA could provide the DA with more precise industry data, including consumption patterns and price trends as well as supply levels per region and province, which are invaluable in crafting more responsive policies,” Laurel said.
He also pointed out that freeing up warehouse space by selling existing NFA rice stocks would allow the agency to ramp up local palay procurement at roughly a two-to-one ratio for every sack of rice produced, bolstering price support mechanisms for farmers.
