Agriculture Secretary Francisco P. Tiu Laurel Jr. said Monday that President Ferdinand Marcos Jr. is set to issue an executive order authorizing emergency government procurement of palay to stabilize farm-gate prices hit by adverse weather and a bumper harvest, which have offset the effects of the two-month rice import ban.
Speaking during the House deliberations on the proposed 2026 budget, Tiu Laurel reported that palay prices have plunged again in recent days.
“This is quite alarming. Over the weekend, everyone in the DA has been at work. I was with President Marcos in Northern Luzon, and these are the decisions that have been made,” he said.
Proposed measures include extending the import ban by at least 30 days; setting a palay floor price; raising rice tariffs from the current 15 percent once the ban is lifted; prohibiting government and local agencies from buying imported rice; authorizing the National Food Authority (NFA) to conduct emergency palay procurement; and allowing it to lease private warehouses for additional storage.
Tiu Laurel noted that farm-gate prices briefly climbed to about P14 per kilo just before the import freeze took effect on September 1, up from P8 to P10, but have since slid back to pre-ban levels. In parts of Northern Luzon where rains and floods damaged crops, wet palay reportedly dropped to as low as P6 per kilo.
As NFA council chair, he said the agency targets to buy wet palay at P17 per kilo under the emergency scheme while the import ban is still in place.
“There is a big possibility it will be extended until the end of this year,” he added, noting that rice millers and traders had recommended a two-month extension in a recent meeting.
