Manila: To protect the local palay (unhusked rice) industry, the Department of Agriculture (DA) on Thursday said it wants more investment support in local post-harvest facilities from rice importers. The proposed measure will be under the Rice Industry and Consumer Empowerment (RICE) Act.
According to Philippines News Agency, DA Secretary Francisco Tiu Laurel Jr. stated that the proposal aims to sustain the livelihood of Filipino farmers amidst the influx of imported rice. During an Economic Journalists Association of the Philippines' (EJAP) food security forum, he expressed concern over rice importers who engage in trade without investing in or purchasing local palay, potentially harming domestic farmers and processors.
The initiative seeks to make investment in post-harvest facilities a prerequisite for securing import allocations. 'We will grant the right to import or the allocation to import to those who have invested in the industry and continuously buy and process palay for our farmers,' Tiu Laurel explained.
If enacted, the policy will provide the legal framework for its implementing rules and regulations (IRR). This measure is anticipated to ensure reasonable profits for palay farmers by enhancing access to more drying facilities.
By 2028, the DA envisions that only those with comprehensive rice processing systems, including mills and drying systems, will be eligible to import rice. Tiu Laurel emphasized that this requirement would not only protect farmers but also benefit consumers by ensuring quality and fairness in the market.
Currently, approximately 80 percent of rice importers in the country lack milling or drying facilities. In 2025, some Filipino farmers experienced losses as farmgate prices for wet and fresh palay reportedly fell to PHP5 per kilogram in Nueva Ecija, according to the Samahang Industriya ng Agrikultura.
The DA has criticized certain rice traders for allegedly exploiting Filipino farmers and has vowed to implement necessary interventions, particularly during the end of the harvest season last July.
