Philippine President Marcos extends rice import ban until yearend
President Marcos has extended the rice import ban until year-end to support farmgate palay prices. The Department of Agriculture said the move aims to stabilize markets while harvests continue. Palay prices have recovered from lows of P8 to around P13–14/kg, but farmers seek a higher floor price as volatility persists.
MANILA – President Ferdinand Marcos Jr. has approved the extension of the rice import ban until the end of the year to help stabilize farmgate prices of palay, Agriculture Secretary Francisco Tiu Laurel Jr. said on Sunday.
The Department of Agriculture (DA) chief, the Executive Order (EO) formalizing the extension of the import suspension will be released on Monday.
“With the import ban having little impact on retail prices and supply of rice but a significant effect on the farmgate price of palay, President Marcos deemed it necessary to extend the suspension for two more months,” Tiu Laurel said in a statement.
President Marcos initially suspended importation of regular and well-milled rice for two months from Sept. 1 to Oct. 31 through EO 93 to counter the sharp decline in palay prices ahead of the wet harvest season.
READ: Rice importation suspended for 2 months starting Sept. 1
While the measure briefly lifted prices, the gains tapered off as the moratorium for rice imports neared its expiry.
Tiu Laurel said that with harvests still ongoing in several regions, the extended import ban—together with the rollout of the Sagip Saka program and the establishment of a floor price for palay—should help support struggling rice farmers.
According to Tiu Laurel, he recommended the extension to the President as “a necessary measure to provide sustained support to local producers, maintain market stability, and allow a more comprehensive assessment of the policy’s effects.”
A low of P8
Palay prices in major producing provinces such as Isabela and Nueva Ecija had climbed to P13 to P14 per kilo, from as low as P8 in some areas before the import freeze, he said.
Tiu Laurel earlier noted that over-importation and poor-quality harvests in some areas, worsened by bad weather in the past months, had depressed farmgate prices, which had fallen to as low as P8 in some areas in the country.
Reports from the DA’s Regional Rice Program showed that prices peaked at P16.50 per kilo between Sept. 8 to 12 before easing to P13.50 by Sept. 15 to 19.
These prices were just slightly above the cost of production which is between P12 to P14 a kilo.
“This demonstrates that while upward adjustments have been observed, farmgate prices remain volatile and the harvest is still underway across much of the country,” Tiu Laurel said.
P20 per kilo floor price
The farmgate prices, however, were still below the P17 per kilo of floor price for wet palay the DA is eyeing following President Marcos’ EO 100, which authorized the DA to determine the palay floor price for government procurement.
These were also much lower than the demand of farmers’ groups, including Nagkakaisang Magsasakang Novo Ecijano (Namane), Amihan and Kilusang Magbubukid ng Pilipinas, calling for a P20 per kilo floor price for palay.
Groups were also asking President Marcos to also accede to the DA’s recommendation to gradually increase the tariff on imported rice from the current 15 percent to 35 percent.
In June 2024, President Marcos signed Executive Order No. 62, which slashed rice tariffs from 35 percent to 15 percent until 2028 to help tame rice retail prices and slow food inflation. The current rate, however, is subject to a periodic review every four months.
According to Tiu Laurel, the extension of the import ban would allow a fuller evaluation of the policy’s impact on both farmgate and retail markets and continue shielding local farmers from downward price pressures caused by cheaper imports.
It would also sustain market stability and consumer welfare, while enabling policymakers to integrate more indicators—such as warehouse inventories and trade flows—for a more comprehensive assessment.
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Source : ANN News
