Philippine Palay Prices Recover Following Government's Rice Import Suspension
Farmgate prices of palay, or unhusked rice, have begun to rebound in the Philippines after the government implemented a four-month halt on rice imports, according to a statement from the Department of Agriculture (DA) released on Friday. This development marks a significant shift from the declining trends observed in late 2024 and throughout 2025.
Price Increases and Historical Context
As of January 30, 2026, data indicates that dry palay has risen to PHP21.52 per kilogram, while fresh palay has increased to PHP18.42 per kilogram. This recovery follows a period of decline that started in late 2024, after strong prices were recorded in 2023 and during the 2024 dry season harvest. The Philippine Statistics Authority provided these figures, highlighting the impact of market fluctuations on local agriculture.
Government Intervention and Import Analysis
In a detailed statement, DA Secretary Francisco Tiu Laurel Jr. emphasized that government intervention has been crucial in countering the effects of what he described as "excessive" rice imports in previous years. These imports, he argued, drove down palay buying prices and undermined the profitability of rice farming. Secretary Tiu Laurel pointed out that in 2024, the Philippines imported approximately 4.8 million metric tons of rice, which he estimated to be about 1 million to 1.2 million metric tons more than the country's actual needs.
The surge in imports led to a domestic oversupply, which in turn pushed farmgate prices down significantly in 2025. Monitoring by the National Food Authority revealed that prices fell to as low as PHP13.38 per kilogram during the peak harvest period in October. Additionally, sporadic reports cited traders offering prices as low as PHP8 and even PHP6 per kilo, further illustrating the market pressures faced by farmers.
Balancing Supply and Demand
Secretary Tiu Laurel stressed the importance of ensuring that imports cover real supply gaps without exceeding demand. "Striking the right balance ensures gains for everyone in the rice value chain -- farmers, traders, millers, and consumers -- while safeguarding national food security," he stated. To achieve this balance, the DA plans to calibrate its policies to maintain sufficient buffer stocks and time imports strategically, aiming to ease retail inflation while protecting farmer interests and consumer welfare.
Future Plans and Legislative Support
Earlier, Secretary Tiu Laurel announced plans to impose quantitative restrictions to encourage traders to invest in local palay production. This initiative is pending the enactment of the proposed Rice Industry and Consumer Empowerment (RICE) Act. Under this proposal, importers would receive allocations in exchange for procuring local palay or rice, creating a more integrated and supportive system for domestic agriculture.
While the specific ratio for local procurement-to-import allocation is still under review, Secretary Tiu Laurel assured industry stakeholders that there will be close consultation throughout the process. The DA intends to roll out at least a version of this proposal in the second half of the year, signaling a continued commitment to stabilizing the rice market and supporting Filipino farmers.
