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International trade

President Marcos Extends Rice Import Ban to Stabilize Palay Prices

Strategic Insights

— 1 min read

President Ferdinand Marcos Jr. has approved an extension of the rice import ban until the end of the year to help stabilize farm-gate prices of palay (unhusked rice). The initial ban, implemented through Executive Order No. 93, aimed to counter the sharp decline in palay prices ahead of the wet harvest season. However, the gains made by the initial ban tapered off as the moratorium approached its expiry. The extension of the ban is expected to provide a much-needed boost to farmers, with prices in major producing provinces such as Isabela and Nueva Ecija having climbed from a low of P8 per kilo to P13 to P14 per kilo.

Key Takeaways:

  • President Ferdinand Marcos Jr. has approved the extension of the rice import ban until the end of the year to help stabilize farm-gate prices of palay.
  • The initial ban had a significant effect on the farm-gate price of palay, but a negligible impact on retail prices and supply of rice.
  • Over-importation and poor-quality harvests in some areas, worsened by bad weather, had depressed farm-gate prices.
  • Reports from the Department of Agriculture's (DA) Regional Rice Program showed that prices peaked at P16.50 per kilo between Sept. 8 and 12 before easing to P13.50 by Sept. 15 to 19.
  • The farm-gate prices are still below the P17 per kilo of floor price for wet palay that the DA is eyeing following Marcos' EO 100.
  • Groups have asked the government to gradually increase the tariff on imported rice to 35 percent.

Statistics:

  • The farm-gate price of palay in major producing provinces had climbed from a low of P8 per kilo to P13 to P14 per kilo.
  • Before the import freeze, some areas reported palay prices as low as P8 per kilo.
  • The cost of production is between P12 and P14 a kilo.
  • The DA is eyeing a palay floor price of P17 per kilo for government procurement.

Sources:

  • "President approves extension of rice import ban until year's end." Manila Bulletin, 23 October 2022.
  • "DA sets P17/kg floor price for wet palay after Marcos EO 100 approval." Manila Standard, 21 October 2022.
  • "Groups ask government to hike tariff on imported rice to 35%." Business Mirror, 20 October 2022.

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