FARMERS REJOICE: Rice Cartel FINALLY Caves!

FARMERS REJOICE: Rice Cartel FINALLY Caves!

A crucial lifeline is being extended to Filipino rice farmers as millers pledge to increase purchasing prices for both wet and dry palay, the unmilled rice that represents their livelihood. This commitment arrives as the dry-season harvest begins, a period often marked by price drops and hardship for those who cultivate this staple crop.

Department of Agriculture officials announced the agreement following intensive consultations with rice millers and importers, recognizing the urgent need to stabilize farmgate prices. Millers have agreed to a minimum of P17 per kilo for wet palay and P21 per kilo for dry palay, specifically targeting key rice-producing regions in Northern and Central Luzon.

This price floor is a direct response to a concerning trend: the national average farmgate price of dry palay plummeted to P17.70 per kilo in 2025, a significant 24.62% decrease from the previous year’s P23.48. Farmers have been struggling with dwindling profits, and this intervention aims to alleviate that pressure.

Alongside the domestic price support, a substantial volume of imported rice – 300,000 metric tons – is slated to arrive by the end of February. This strategic timing is designed to avoid disrupting the local market during the peak harvest months of March and April, ensuring farmers can sell their produce without facing undue competition.

Strict guidelines are in place to enforce this timeline. Any rice shipments arriving after February 28th will be sent back to their origin at the importer’s expense, a measure intended to protect the interests of local farmers and prevent market saturation during the harvest season.

Import activity is already exceeding initial projections, with 178,397 metric tons of imported rice arriving in the country between January 1st and 15th – more than double the anticipated 71,772 metric tons. This influx is being closely monitored by the Department of Agriculture.

Looking ahead, the DA is prepared to reassess import policies once the peak harvest begins. Options under consideration include a potential import ban or further restrictions on import volumes, all aimed at safeguarding the income of Filipino rice farmers.

Currently, the tariff rate on imported rice remains at 15%, and the Department of Agriculture is carefully managing any potential adjustments to avoid fueling market speculation. Final decisions regarding tariffs will be announced soon, with a focus on stability and fairness for all stakeholders.

The agency has emphasized a commitment to transparency and careful management of these policies, recognizing the delicate balance between ensuring affordable rice for consumers and protecting the livelihoods of those who grow it.