The government is walking a careful line between protecting farmers’ incomes and keeping rice affordable for consumers, as rice industry stakeholders agree on a new palay buying range designed to stabilize the market ahead of the peak harvest season.
The Department of Agriculture announced that wet palay will be bought at ₱17 per kilo, while dry palay will be priced at ₱21 per kilo in key rice-producing areas.
The agreed range will apply in major farming provinces including Nueva Ecija, Nueva Vizcaya, Pangasinan, Bulacan, Ilocos, and across Central Luzon, and will remain in effect until the harvest reaches its peak in April.
According to the department, the pricing agreement is not simply about farmgate earnings, but about managing the entire rice value chain. By holding palay prices within the ₱17 to ₱21 range, officials believe retail rice prices can be kept stable, with regular milled rice staying within the ₱45-per-kilo level that consumers have come to expect.
This approach reflects a broader balancing act in the rice sector. On one hand, the government is seeking to prevent farmgate prices from falling during harvest season, when supply traditionally surges and farmers are most vulnerable to price drops. On the other, it is mindful of the impact of higher palay prices on retail costs, especially as inflation pressures remain a concern for households.
To reinforce this balance, industry stakeholders have also agreed to allow up to 300,000 metric tons of imported rice into the country, but with strict timing controls. As of mid-January, around 178,000 metric tons have already arrived, with the remaining volume expected to enter the country by February.
The clear objective is to prevent imported rice from flooding the market during the height of local harvest, which could depress palay prices and undermine farmer incomes.
The Department of Agriculture has emphasized that all approved imports must arrive on or before February 28. Any shipment that comes in beyond that deadline will be sent back to its source country at the importer’s expense, underscoring the government’s intent to strictly enforce the schedule.
Despite the resumption of rice importation, the department noted that market prices have remained relatively steady. Imported regular milled rice has seen only a modest increase, rising to ₱42 per kilo from ₱40. Local regular milled rice continues to sell at around ₱40 per kilo, while local well-milled rice remains at approximately ₱45 per kilo.
Taken together, the fixed palay buying range and the carefully timed arrival of imported rice signal a more calibrated approach to rice market management. Rather than relying solely on imports or price controls, policymakers are attempting to synchronize farmgate pricing, import volumes, and harvest cycles to keep both farmers and consumers insulated from sharp price swings.
Whether this delicate balance can hold through the peak harvest months will be closely watched by both the agricultural sector and the broader economy.