The Marcos administration is considering extending the ongoing suspension on rice imports until the end of the year, as the policy continues to fall short of improving the prices of palay (unmilled rice) amid a strong harvest, according to the Department of Agriculture (DA).

Agriculture Secretary Francisco Tiu Laurel confirmed on Monday, Sept. 29, that President Ferdinand “Bongbong” Marcos Jr. has agreed to extend the 60-day import pause by an additional 30 days.

However, Tiu Laurel said it is likely to be extended by an additional 30 days, with the deadline set on Dec. 31.

He said this extension has been requested by local rice millers and traders since last week, after another massive drop in palay prices.

Marcos earlier ordered the suspension of foreign rice purchases for 60 days, starting Sept. 1, in order to improve local farmgate prices.

The import pause was seen as a measure to protect farmers from the influx of cheaper imported rice, which is largely blamed for the decline in palay prices.

Last week, Tiu Laurel said that palay prices improved from as low as ₱8 per kilo to around ₱14 per kilo and even ₱17 per kilo in some areas during the early days of the suspension.

With the harvest season in full swing, prices have dropped to ₱6 per kilo, which is far below the production cost of ₱12 to ₱14 per kilo.

Tiu Laurel said the ongoing harvest has been strong on the back of favorable weather conditions during the planting season, recovering from the previous seasons that struggled due to drought.

“So it's obvious that we don't need to import,” he noted.

If the import ban is extended to the year-end, rice arrivals in the country would stand at 3.08 million metric tons (MT), the latest data recorded as of Sept. 11.

Tiu Laurel added that the recent string of typhoons worsened the situation further, as many farmers were unable to dry their harvests properly, reducing their quality and, ultimately, their price.

“So, it is quite alarming. That's why over the weekend, the DA, NFA (National Food Authority), and even the President worked together to…address the situation and help our farmers,” he said on the sidelines

The secretary said the government is planning to issue executive orders (EOs) that will set policies to boost palay prices and help affected farmers.

He said Marcos is set to issue a policy that would prohibit local government units (LGUs) and government agencies from purchasing foreign-sourced rice and instead shift these purchases to local farmers.

Another policy that was approved in principle is providing NFA with the power to make emergency purchases of palay, while also enabling the agency to rent private warehouses to expand its storage capacity.

Tiu Laurel, who chairs the NFA Council, said the agency will procure wet palay at ₱17 per kilo under this emergency plan.

A proposed policy mandating a floor price on palay is seen as complementing this mandate.

Lastly, the DA chief said the President will issue an EO that will raise the current tariff rate on imported rice following the conclusion of the temporary suspension.

Tiu Laurel said he is coordinating with Finance Secretary Ralph Recto and Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go to review the potential increase from the current 15 percent tariff.

“They are running the numbers now from 20 percent, 25 percent, or 35 percent. Hopefully, we can make a decision before the closure of the ban,” he explained.

Tiu Laurel earlier floated that the DA is open to increasing the tariff rate to its previous level of 35 percent, but he said this should be done in phases to minimize the impact on the rice market.