ZAMBOANGA CITY — The price of commercial fancy rice in Zamboanga City has jumped to around P1,600 per 25-kilo sack, a roughly P500 increase since late 2025.

Local rice traders say the spike is the result of a mix of global market pressures, domestic supply issues, and national agricultural policies.

“Supply is tight, demand is strong, and factors like El Niño are still affecting harvests,” said one trader, who asked not to be named. International market trends, they added, are also pushing prices higher.

To protect local farmers and stabilize palay farmgate prices, the government recently extended its suspension on rice imports through the end of 2025. But some stakeholders say such bans, without sufficient domestic buffer stocks, can allow traders to hoard fancy rice and sell it at higher prices.

While the Maximum Suggested Retail Price (MSRP) for imported standard rice is set at P43 per kilo, this usually applies only to 5 percent broken varieties — leaving fancy rice largely unregulated and vulnerable to steep price jumps.

The city’s crackdown on rice smuggling has also disrupted long-standing informal supply channels, creating a market vacuum that worsened the scarcity of fancy rice.

Imported rice from neighboring Malaysia had previously helped keep prices stable, but now that supply has slowed.

Looking ahead, local dealer Leticia Militante warned that the government’s 20 percent rice import tariff starting 1 January could push prices even higher. Under Executive Order No. 105, tariffs can range from 15 percent to 35 percent depending on international market conditions.

“Any increase in tariffs means higher landing costs for imported rice, and those costs usually get passed on to consumers,” Militante said. She added that even though the tariffs target standard imported rice, they indirectly raise the price floor for all rice varieties, including fancy rice.

With supply tight, tariffs rising and demand unrelenting, Zamboanga shoppers may need to brace for more expensive rice in the months ahead.