Average farmgate prices of dry palay across the Philippines climbed to P23.91 per kilo, up 28 percent from a year earlier, according to data from the Philippine Statistics Authority, signaling firmer earnings for farmers amid shifting supply conditions.
For the first quarter, prices averaged P22.16 per kilo, a notable increase from P16.94 in the previous quarter and P19.92 in the same period last year. The steady rise reflects tighter domestic supply and improving market sentiment following policy adjustments on rice imports.
Regional data showed wide price variations. Northern Mindanao posted the highest average in March at P26.99 per kilo, while the Bangsamoro Autonomous Region in Muslim Mindanao recorded the lowest at P19.42. In Luzon’s key rice-producing regions, prices remained elevated, with Region I at P26.73, Region II at P24.22, and Region III at P24.42 per kilo.
Supply constraints as a key driver of the price movement. The decision of President Ferdinand Marcos Jr. to suspend rice importation from September to December reduced market inflows, tightening availability and supporting farmgate prices during the harvest cycle.
While higher palay prices improve farm incomes, they also underscore the delicate balance policymakers face between protecting producers and managing consumer inflation.
Sustained price gains could encourage stronger planting activity in the coming seasons, but may also add pressure on retail rice prices if supply remains constrained.
