By Giselle P. Jordan

THE Department of Agriculture (DA) is considering limiting monthly rice import volumes from June to August to prevent palay (unhusked rice) farmgate prices from collapsing.

On Sunday, the department said that with about 77 percent of the national harvest already in, fresh palay prices had dipped to P16 to P17 per kilogram (kg) in some parts of Nueva Ecija, Pampanga, Isabela, and Cagayan.

The decline is not nationwide, the DA said, with palay farmgate prices in areas like Palawan significantly higher at P23-24/kg, suggesting localized price pressures may be causing the decline.

Agriculture Secretary Francisco Tiu Laurel Jr. said that while rice imports remained necessary, these must be managed carefully to prevent further dips in local palay farmgate prices.

He claimed that previously implemented import controls had helped ensure that about 70 percent of the domestic palay harvest was sold at favorable prices.

Aside from limiting imports, the DA said it was also exploring blending local and imported rice to stabilize consumer prices while prioritizing domestic output. Stakeholders were invited to propose blending ratios favoring local output.

“We want to strike a balance among all stakeholders in the rice value chain, including consumers, especially amid climatic and geopolitical challenges,” Tiu Laurel said.

Negotiations are also ongoing for long-term supply contracts with source countries, including potential shipments from India.

Meanwhile, the DA said the National Food Authority ( A) had increased its palay buying price to as much as P30/kg for dry palay in some areas. It added that the agency would intensify its palay procurement to help stabilize the market.

The A is also rolling out a direct purchase system that will allow farmers to secure sales orders even before they complete their harvests.

The DA is aiming for a domestic palay farmgate price of P22/kg for the September to November harvest, saying the period is a “crucial recovery window.”

The DA noted that rice industry stakeholders had also raised the issue of persistent logistical bottlenecks, particularly the shortage of hauling trucks, that continue to delay deliveries and limit farmers’ access to A buying stations.

To address this, new trucks will be bought this year to facilitate deliveries.

The A is also pushing to expand storage and warehouse capacity, including strategic stockpiling, to secure national supply through 2027. The national inventory currently is enough for 70 days of consumption.

Complicating the A’s efforts are global and environmental factors. The war in the Middle East has driven up fuel and fertilizer costs, raising overall production costs, while an upcoming El Niño later threatens crop yields and livestock production.

These may discourage planting and production in the next cycle, the agency said.

Despite this, Tiu Laurel said the DA’s priority was that of ensuring price stability without harming farmers and securing enough food supply for the country.

GISELLE JORDAN

Published Date: May 4, 2026