MANILA, Philippines — In a move to stabilize the local rice market and protect farm-gate prices, the Department of Agriculture (DA) has reached an agreement with rice millers and traders to set a price floor for buying palay (unmilled rice) and limit import arrivals during the local harvest season.
The commitment follows a consultation meeting over the weekend aimed at preventing a steep decline in prices as the harvest begins in key provinces across Central Luzon and Cagayan Valley.
Price Commitments Major industry players have pledged to maintain the following buying prices for palay:
- Wet Palay: P17 per kilogram (kg)
- Dry Palay: P21 per kilogram (kg)
These rates will apply to major producing areas such as Nueva Ecija, Nueva Vizcaya, and Bulacan. DA spokesperson Arnel de Mesa expressed hope that these prices can be maintained through the end of the harvest season in April.
Strategic Import Limits To ensure that imported rice does not flood the market and depress local prices during harvest, industry players agreed to:
- Import Volume: Approximately 300,000 metric tons (MT).
- Deadline: All shipments must arrive no later than February 28, 2026.
Agriculture Secretary Francisco Tiu Laurel Jr. emphasized that “farmer prices are non-negotiable,” asserting that any agreed import volumes must not come at the expense of local producers. This follows a four-month ban on rice imports previously ordered by President Marcos to protect local farmers.
Market Outlook The DA projects large harvest volumes to peak by mid-March, with milling activity increasing into April. Currently, retail prices for local regular milled rice range from P33 to P48 per kg, while local well-milled rice retails for P38 to P54 per kg—both slightly lower than the same period last year.
Logistics and Duties The Bureau of Plant Industry (BPI) has also expanded the list of ports authorized to receive imported rice, adding Bataan and Poro Point in La Union. All imported shipments will be subject to a 15-percent import duty.
The National Food Authority (NFA) has stated it will not compete with private traders as long as the latter continue to purchase local palay at or above the newly agreed price caps.