Palay prices rise ahead of rice import suspension

MANILA, Philippines — Palay farmgate prices have started to rise in nearly half of the country’s key rice-producing regions, climbing by around five to 55 centavos per kilo, figures from government agencies showed.

In a statement over the weekend, the Department of Agriculture (DA) said data from the National Food Authority (NFA) indicated that six of the 13 top-growing regions are already seeing price gains.

NFA monitoring shows traders’ buying prices for dry palay increased by 0.3 to 2.6 percent since late July, just before President Marcos ordered the import ban.

 With that, the DA said average buying prices for dry palay now range from P16.98 per kilo in Central Luzon to P20.59 in Southern Mindanao.

Meanwhile, prices remained steady in Southern Tagalog at P16.52 and in Western Visayas at P17.60.

On the other hand, declines were observed in Ilocos, Cagayan Valley, Eastern Visayas, Northern Mindanao and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), where the lowest price recorded was P14.43 per kilo in Cagayan Valley and the highest at P21.67 in BARMM.

Agriculture Secretary Francisco Tiu Laurel Jr. said the government is closely monitoring the market’s response to the rice import suspension, which takes effect on Sept. 1.

The measure was ordered after palay prices fell to as low as P8 per kilo, well below the estimated P12 production cost for the most efficient farmers.

“We are watching the market’s response to the rice import suspension very closely,” Tiu Laurel said.

“If palay prices remain low during the ban, we may consider extending it, or recommend that President Marcos increase tariffs. And if prices rise, we could shorten the ban,” he added.

For his part, NFA administrator Larry Lacson noted that the increase is modest and a positive sign for farmers.