DA eyes extending rice import ban to support local farmers

The Department of Agriculture (DA) is considering extending the current moratorium on rice imports to support local farmers.

Preliminary data indicate an increase in wet palay prices following the import ban, with some areas in Mindanao reporting prices as high as P17 per kilo.

Agriculture Secretary Francisco Tiu Laurel Jr. indicated he is leaning towards recommending an extension of the moratorium for at least 15 to 30 days.

The average cost of producing one kilo of palay is approximately P14, with the most efficient farmers managing to produce at P12 per kilo.

However, rice importers may leverage prices and bargain for lower rates once the ban is lifted due to a global supply glut and soft prices.

This is because the Philippines is a top market for exporters like Vietnam and Thailand, who are experiencing storage gluts and facing thinner profit margins.

The two-month import ban ordered by President Marcos would accelerate a buyers' market dynamic in the global rice trade.