Rice millers committed to higher farmgate prices for palay — DA

By Vonn Andrei E. Villamiel

RICE MILLERS have committed to raising their buying prices for both wet and dry palay (unmilled rice), while importers agreed to an initial shipment of 300,000 metric tons (MT) to arrive by the end of February, ahead of the peak harvest season, the Department of Agriculture (DA) said.

At a briefing on Thursday, Agriculture Assistant Secretary Arnel V. De Mesa said the commitment followed consultations by the DA with rice millers and importers, amid the early start of the dry-season harvest.

Mr. De Mesa said millers agreed to buy unmilled grain at a minimum of P17 per kilo for wet palay and P21 per kilo for dry palay, particularly in major rice-producing provinces in Northern and Central Luzon.

“The millers committed that they will buy at that price. Hopefully, it will be maintained until the end of the harvest season in April,” he said in mixed English and Filipino.

The higher farmgate price is expected to provide much-needed support to farmers, as palay prices have dropped over the past year.

Preliminary data from the Philippine Statistics Authority showed that the national average farmgate price of dry palay in 2025 was P17.70 per kilo, down 24.62% from P23.48 a year earlier.

Following consultations with importers, the DA also identified an initial import volume of about 300,000 MT through the end of February, subject to further review based on market conditions.

“The volume needs to arrive on or before the end of February, so that it will not coincide with peak harvest in March and April,” Mr. De Mesa said.

According to guidelines issued by the Bureau of Plant Industry, rice shipments arriving beyond the Feb. 28 deadline will be returned to the source country at the expense of the importer.

Data from the bureau showed that 178,397 MT of imported rice arrived in the country from Jan. 1 to 15, more than double the 71,772 MT initially projected for the period.

Mr. De Mesa said the DA will study whether to reimpose an import ban or further limit import volumes once the peak harvest season begins in March.

He added that the tariff rate on imported rice remains at 15%, pending an official announcement from the agency.

In a separate statement, the DA said rice tariffs will not be raised until February and that the final details will be “carefully managed to avoid unnecessary market speculation.”

Under the implementing guidelines of Executive Order No. 105, the rice tariff rate for January was scheduled to be announced by Jan. 15, based on December prices of Vietnam 5% broken rice, and will remain in effect until May 15.