Palay prices start to climb as rice import suspension nears

Farmgate prices of palay have begun inching up in several key rice-producing regions, just a week after President Ferdinand Marcos Jr. ordered a two-month suspension of rice importation starting 1 September, according to the latest data from the National Food Authority (NFA).

Agriculture Secretary Francisco Tiu Laurel Jr. said the government is closely tracking how the market responds to the import pause, which was prompted by reports that some farmers had been forced to sell palay at just P8 per kilo — far below the estimated P12 production cost.

“We are watching the market’s response to the rice import suspension very closely,” Laurel said.

“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.”

Global rice prices have softened this year after India lifted its export ban on non-basmati rice last September. Bumper harvests in exporting countries, weaker demand from importers, and lower tariffs have further fueled rice shipments from Vietnam and other suppliers.

In April and May alone, the Philippines imported 970,000 metric tons of rice, enough for nearly three months of consumption, even as local palay harvests reached a record 9.08 million metric tons in the first half of 2025. The DA is targeting an all-time high output of 20.46 million tons for the year.

NFA Administrator Larry Lacson welcomed the recent price uptick, saying the temporary import halt is meant to give farmers breathing space.

“The objective of the import ban is to allow the price of palay to 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.

NFA monitoring showed dry palay buying prices have climbed between 0.3 to 2.6 percent since late July in Central Luzon, including Nueva Ecija, the country’s rice granary, along with Bicol, Central Visayas, and parts of Mindanao.

Average prices ranged from P16.98 per kilo in Central Luzon to P20.59 in Southern Mindanao, while holding steady at P16.52 in Southern Tagalog and P17.60 in Western Visayas.

However, prices dropped in Ilocos, Cagayan Valley, Eastern Visayas, Northern Mindanao and Bangsamoro Autonomous Region in Muslim Mindanao, with Cagayan Valley recording the lowest at P14.43 per kilo, and BARMM the highest at P21.67.