The Department of Agriculture (DA) is looking to suspend tariffs on imported rice as early as September 2025 to help stabilize local prices and support farmers facing historically low farmgate prices for palay.
Agriculture assistant secretary and spokesperson Arnel de Mesa said in an interview Tuesday that the suspension of rice tariffs could take effect as early as September, coinciding with the peak harvest season from September to October, to avoid further depression in palay prices.
The move comes as farmgate prices of palay drop to as low as P8 per kilo, with some unverified reports citing offers as low as P5, levels de Mesa described as “abusive.”
The average farmgate price now stands at P9 to P11 per kilo, significantly below the 2024 production cost of P14/kilo.
“This price level is already too low. Even if we use last year’s production cost, farmers are clearly losing money,” De Mesa said.
He clarified that the sudden decline in palay prices was not due to the government’s push for P20-per-kilo rice retail, but rather the result of compounded factors, including high domestic rice production and continued rice importation.
“We recorded historically high production during the first half of the year. And with imported rice still entering the country, the market has an ample supply of rice, though we avoid using the term ‘oversupply’,” De Mesa added.
The Philippine Statistics Authority (PSA) recently reported a 15.9 percent decline in rice inflation, the steepest drop since 1995, reflecting falling retail prices.
While the development is welcome news for consumers, De Mesa acknowledged it presents a “double-edged sword.”
“This is positive for the consuming public, but we in the DA must strike a careful balance. If this trend continues and we don’t intervene, farmers may lose interest in planting. That will impact local production,” he explained.
De Mesa emphasized that local farmers still produce the majority, about 75 to 80 percent, of the country’s rice supply, with only 20 to 25 percent imported. A significant reduction in planting intentions could affect long-term food security.
Still, he acknowledged that financial assistance may not be enough if the prevailing price levels threaten farmers’ livelihoods.
“This is one way the government can step in, through tariff suspension, so we can give farmers some relief while ensuring rice remains affordable to all Filipinos,” De Mesa said.
