Philippines keen on limiting rice imports for 90 days
The Philippines plans to curb rice imports for 90 days from June to support falling palay prices during harvest. The government aims to stabilise farmgate prices, boost procurement, and improve logistics, while balancing supply needs amid rising costs, climate risks, and ongoing efforts to protect farmers’ incomes.
The Department of Agriculture (DA) is mulling over curbing rice imports for 90 days starting June to prevent farmgate prices from “collapsing” during the harvest of crops planted during the wet season.
The DA made the pronouncement after farmgate prices of palay slid to as low as P16 per kilo in key rice-producing areas, such as Nueva Ecija, Pampanga, Isabela, and Cagayan, as the main harvest season nears its completion.
Agriculture Secretary Francisco Tiu Laurel Jr. said the DA is considering limiting monthly rice import volumes from June to August to “balance supply and farmgate price concerns.”
This would ensure ample domestic supply, while preventing a farmgate price collapse, he added.
“Rice imports remain necessary but must be carefully managed to avoid further depressing local prices.”
The DA chief noted that import controls helped ensure that about 70 percent of the harvest was sold at “favorable levels.”
The agency is also targeting to set a farmgate price of P22 per kilo for the wet season harvest in September to November, which it considers as a “crucial recovery window” for farmers.
Meanwhile, the National Food Authority (NFA) has increased its buying price for dry palay to as much as P30 per kilo, adding that it will intensify procurement in areas where prices have nosedived.
The DA has also rolled out a direct purchase order system to enable farmers to sell directly to the NFA before their actual harvest.
As stakeholders flagged logistical bottlenecks that continue to delay deliveries and limit farmers’ access to government buying stations, the DA said this will be partly addressed by the NFA’s additional procurement of 150 trucks this year.
The DA also said it is pushing for expanded storage and warehouse capacity, including strategic stockpiling to secure supply up to 2027. Currently, the national rice inventory stands at roughly 70 days of consumption.
The DA is exploring policy options, such as blending local and imported rice, to keep retail prices stable. Stakeholders have been invited to propose blending ratios that will favor local rice.
“We want to strike a balance among all stakeholders in the rice value chain, including consumers, especially amid climatic and geopolitical challenges,” the DA chief said.
Tensions in the Middle East have raised the cost of fertilizer and fuel for farm machinery, while El Niño occurring in the second half of 2026 threatens the upcoming crop harvest and livestock production.
The DA also noted that negotiations with source countries for longer-term rice supply contracts are ongoing, while potential shipments from India were also discussed.
“The priority remains price stability without harming farmers, securing an adequate supply into next year.”
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Source : Business Mirror
