The Department of Agriculture (DA) is proposing the extension of the two-month suspension on rice imports imposed earlier this month by up to 30 days, buoyed by improvements in the domestic prices of palay or unmilled rice.

Agriculture Secretary Francisco Tiu Laurel said he is inclined to recommend to President Ferdinand “Bongbong” Marcos Jr. an extension of the current import ban, pending data validation.

Marcos ordered the suspension of foreign rice purchases for 60 days in order to stabilize local prices, beginning Sept. 1.

The suspension, which covers the months of September and October, was implemented to protect local farmers from the influx of cheaper imported rice.

The two-month period coincides with the peak of the country’s wet cropping season.

The steady arrival of imported rice in local markets was earlier cited by the DA as one of the factors contributing to the sharp decline in farmgate prices, along with bumper harvests across exporting countries and the lifting of India’s rice export ban.

Based on reports, prices of palay have fallen to as low as ₱8 per kilo, which is well below the production cost of ₱12 to ₱14 per kilo.

As of Sept. 11, 3.08 million metric tons (MT) of rice had arrived in the country, according to the Bureau of Plant Industry (BPI).

Since the import ban took effect, Tiu Laurel said farmgate prices, particularly those of wet palay, have largely recovered.

From around ₱8 to ₱10 per kilo, he said prices in certain areas of Mindanao have risen to ₱17 per kilo, while in the provinces of Isabela and Nueva Ecija, they have increased to ₱13 to ₱14 per kilo.

“Although these prices are still not profitable for most farmers, they are an improvement,” said Tiu Laurel.

Tiu Laurel said he plans to submit the recommendation for the potential extension to President Marcos by the end of September.

However, if market conditions change, the proposal to cut the import ban short is still on the table.

Based on the DA’s latest monitoring in Metro Manila markets, the average retail prices of premium rice, well-milled rice, and regular milled rice are ₱43 per kilo, ₱35 per kilo, and ₱33 per kilo, respectively.

If the 60-day import ban is kept as is, the United States Department of Agriculture (USDA) estimates that the Philippines’ rice imports will fall by 500,000 MT.

The USDA expects the country’s rice imports to dip by nine percent to 4.9 million MT from an initial projection of 5.4 million MT.

With the potential extension still in the air, the Department of Trade and Industry (DTI) has reaffirmed its commitment to closely monitor local markets for potential entry of illegal rice imports.

Trade Secretary Cristina Roque added that she will coordinate with the DA to ensure that rice prices are stable during the temporary suspension.

“The job of the DTI is to monitor and to make sure that the prices set by the DA are being followed,” Roque said in a press briefing.