Farmgate prices of palay improved in December from November, buoyed by the government’s decision to extend the rice import ban until the end of the year, offering temporary relief to local farmers after months of weak prices.
Industry data showed that increased rice importation earlier in the year, combined with lower global prices, had weighed heavily on domestic palay prices.
Global supply improved as major exporting countries ramped up harvests following tighter output in 2024 caused by El Niño concerns. Before the import ban was imposed in September, farmgate prices of palay reportedly fell to as low as P8 per kilo in some areas.
Latest figures from the Philippine Statistics Authority (PSA) showed the national average price of palay rising to P18.01 per kilo in December, up from P16.92 per kilo in November.
However, this remained significantly lower than the P20.75 per kilo recorded in December 2024, highlighting the pressure farmers continue to face.
On a quarterly basis, average palay prices in the fourth quarter improved to P16.94 per kilo from P16.35 per kilo in the third quarter. Still, this was well below the P20.53 per kilo average posted in the fourth quarter of 2024, underscoring the year-on-year decline in farmgate earnings.
Price movements varied widely across regions.
PSA data showed palay prices in Sorsogon slid to P11.92 per kilo in December—the lowest in the country—down from P12.97 per kilo in November. In contrast, Davao City recorded the highest palay price at P25.21 per kilo, up from P24.74 per kilo a month earlier.
Rice importation resumed in January, with tariffs raised to 20 percent from 15 percent starting January 16. While the higher tariff may offer some price support, analysts note that sustained recovery in palay prices will depend on balancing imports with stronger protection for local producers.
