Farm gate prices of palay have begun to rise in nearly half of the country’s key rice-producing regions, just a week after President Ferdinand Marcos Jr. announced a two-month suspension of rice imports starting September 1.
The Department of Agriculture (DA) reported that prices of dry palay have increased by 0.3 percent to 2.6 percent in six of 13 regions, notably in Central Luzon, Bicol, Central Visayas, and parts of Mindanao. This early positive trend is attributed to the anticipated tightening of rice supply from imports, prompted by the President’s directive.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the government is “closely monitoring” the market’s response to the import ban, noting it aims to reverse a price slump that pushed palay prices as low as P8 per kilo—well below the average production cost of P12.
“If palay prices rise, we could shorten the ban. If they stay low, we may extend it or even increase tariffs,” Tiu Laurel said.
The National Food Authority (NFA) highlighted that prices now range from P16.98 per kilo in Central Luzon to P20.59 in Southern Mindanao. NFA administrator Larry Lacson welcomed the uptick, saying it offers “relief” to farmers and fulfills the policy’s core objective of improving farm incomes.
“This shows the market is responding. We urge other industry players not to exploit the situation with speculation,” Lacson added.
Despite price drops in regions like Ilocos, Cagayan Valley, and BARMM, the DA remains hopeful that the temporary ban will stabilize prices nationwide and support the sector, which is on track for a record 20.46 million metric tons of palay production in 2025.
