Manila: The Department of Agriculture (DA) on Tuesday announced its proposal to temporarily ban rice importation starting in September, aiming to safeguard local palay (unhusked rice) farmers. This strategic move is intended to ensure better farmgate prices during the upcoming wet harvest season.
According to Philippines News Agency, DA spokesperson Assistant Secretary Arnel de Mesa disclosed in an interview that the department has requested President Ferdinand R. Marcos Jr. to implement this ban. The proposal, initiated by Secretary Francisco Tiu Laurel Jr., suggests commencing the ban on September 1 and extending it for 45 to 60 days. This period aligns with the peak of local palay harvest from wet cropping, expected from September to October.
The proposed ban arises from the current high volume of rice stock inventory, which affects both retail rice prices and farmgate prices of palay nationwide. "A lot of rice imports entered, 2.5 million metric tons (MT). Plus, we have a record harvest of rice in the first semester," de Mesa stated. The Philippines saw a historic high harvest of 9.077 million metric tons (MT) from January to June, surpassing previous records for the same period.
De Mesa emphasized the government's intention to balance stability between retail rice prices and farmgate prices of palay. "We want to have a balanced action for our farmers and consumers," he remarked. As of July 31, the average farmgate prices of rumble fresh palay ranged from PHP8.33 per kg. to PHP17 per kg., while the price of rumble dry varied between PHP15 per kg. and PHP22 per kg., according to the Philippine Rice Research Institute (Philrice).
The Samahang Industriya ng Agrikultura (SINAG) previously highlighted the influx of imported rice, which reportedly caused a drop in farmgate prices, with the lowest buying of wet palay plummeting to PHP5/kg. in Nueva Ecija on July 17.
Under Republic Act (RA) 12078 or the Agricultural Tariffication Act, a temporary import ban can be imposed. Section 9 of the law grants the President the power to 'suspend or prohibit' importation when there is an excessive supply resulting in an extraordinary decrease in local rice prices.
De Mesa pointed out that a reasonable farmgate price of palay should not fall below the average production cost. In 2024, the average production cost for palay rose to PHP14.52/kg., as per the PSA, which is higher than the PHP13.54/kg. in 2023.
To aid farmers, the National Food Authority (NFA) has been implementing its Price Range Scheme (PRICERS), setting a buying price from PHP23/kg. to PHP30/kg. for clean and dry palay, and PHP17/kg. to PHP23/kg. for fresh and wet palay.
