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Food Security Emergency Declared: Addressing Imported Rice Price Surge and Stabilizing Rice Market

Amid soaring imported rice prices, the Philippine government declared a Food Security Emergency, enforcing price controls, releasing NFA stocks, supporting local farmers, enhancing logistics, and promoting agricultural innovation for long-term stability.

Source: GMA News

Reported Price Surge of Imported RiceĀ 

TheĀ  Department of Agriculture (DA), through its price monitoring body Bantay Presyo, reported that the price of imported special rice in Metro Manila had reached Php65 per kilogram (kg) in January. Meanwhile, the price for local special rice is also high, reaching a maximum of Php63 per kg in the same period. The DA emphasized that imported rice should only have a markup of Php6 to Php8 per kg over its landed cost. For example, rice imported from Vietnam at Php40 per kg should not retail for more than Php48 per kg. Selling it at Php60 per kg or higher constitutes profiteering, violating consumer protection laws. Despite government efforts to lower tariffs on imported rice to improve affordability, data indicates that imported rice remains consistently more expensive than locally produced rice. Furthermore, daily price trends reveal that, on most days, imported rice was priced higher than local rice.

Figure 1. Comparison of Prices of Imported and Local Special Rice, 2025

Source: DA, 2025

Decline in Palay Prices in Pangasinan

On February 24, 2025, farmers in Mangaldan, Pangasinan, are holding off on selling their newly harvested palay due to a significant decline in farmgate prices. Freshly harvested palay prices have dropped by 35%-36% compared to the previous year. The decrease was attributed to the oversupply of imported rice in the country, which reduced the demand for local rice among traders. Many farmers are opting to store their harvests in warehouses in hopes of better prices in the coming weeks.

To address this, the National Food Authority (NFA) urges farmers to sell their palay to the agency as part of its procurement target of 870,000 metric tons (MT) nationwide. This initiative aims to stabilize prices while securing the countryā€™s rice supply, particularly for provinces with low production. Despite the price decline, NFA officials assure that rice and palay stocks in their warehouses remain sufficient to meet the regionā€™s needs.

Table 1. Farmgate Prices of Freshly Harvest and Dried Palay in Pangasinan, 2024-2025

Rice Type

Price in 2024

(Php/kg)

Price in 2025

(Php/kg)

Percentage Change (%)

Freshly Harvest Palay

27.00 – 28.0017.50

(ā†“) 35% – 36%

Dried Palay

23.0022.00

(ā†“) 4%

Source: GMA News

Government Initiatives to Stabilize Rice Market

  • Food Security Emergency

On February 3, 2025, the Philippine government, through the DA, declared a National Food Security Emergency to address rising imported rice prices, reaching Php50 to Php65 per kg. In response, the National Food Authority (NFA) will release 300,000 metric tons (MT) of rice from its buffer stocks to stabilize supply and lower costs. The DA also mentioned that there is no rice supply shortage in the country despite declaring a food security emergency.Ā 

Additionally, the DA partnered with MerryMart Grocery Centers to offer local rice at Php29 per kg through the Kadiwa ng Pangulo (KNP) program while also procuring palay from local farmers at Php23 per kg to replenish stocks. To further regulate prices, the DA is implementing a nationwide maximum suggested retail price (MSRP) scheme for imported rice starting February 15, 2025. Initially set at Php55 per kg for rice with 5% broken-grain content, the DA aims to gradually lower the MSRP to Php52 per kg by mid-February and Php49 per kg by early March. Despite these price controls, retailers have been slow to comply, citing the need to sell old stocks purchased at higher prices. In coordination with the Department of Trade and Industry (DTI), the DA is working to ensure compliance while allowing retailers time to adjust.

Source: Business World

In response to logistical challenges, the Land Transportation Office (LTO) will provide cargo trucks to assist with rice distribution, prioritizing areas experiencing shortages or drastic price increases. Additionally, the Philippine Rice Research Institute (PhilRice) has emphasized the importance of climate risk mapping to mitigate agricultural losses caused by extreme weather, which could reduce Philippine rice yields by 10% to 15% by 2040. Recent cyclones have caused significant damage to rice farms in Central Luzon, Cagayan Valley, and Bicol, underscoring the urgent need for climate adaptation strategies in the agricultural sector.Ā 

Recent data from the Bantay Presyo database indicate that imported rice prices have started to decline following the implementation of the DA’s MSRP. Between January 10, 2025, and February 10, 2025, the average prices of imported rice dropped slightly. These price movements suggest that the MSRP is beginning to influence market prices, though additional monitoring and enforcement may be required to ensure full compliance.

Figure 2. Price Trend of Average Retail Prices of Imported Rice in Metro Manila, 2025

Source: DA, 2025

The price decrease in imported rice was also observed in the Batong Malake Public Market in Los BaƱos, Laguna. The average retail price range of imported rice in the area decreased from Php56 – Php60 per kg in the previous week to Php54 – Php58 per kg on February 10, 2025. Aside from the MRSP, retailers also attributed the price decrease to the increase in the volume of imported rice stocks sold by the traders, with the average wholesale price decreasing from Php1300 per sack in January to Php1100Ā  in February.

  • Widespread Adoption of SARAI

The Department of Science and Technology Philippine Council for Agriculture, Aquatic, and Natural Resources Research and Development (DOST-PCAARRD) funded two projects that focused on the widespread adoption of theĀ  Smarter Approaches to Reinvigorate Agriculture as an Industry in the Philippines (SARAI). SARAI is a research program that was implemented to develop crop advisories tailored for rice, corn, banana, coconut, coffee, cacao, sugarcane, soybean, and tomato. These advisories integrate local weather data and drought forecasts with farm management practices, emphasizing nutrient and water management and proactive pest and disease monitoring.

The University of the Philippines Los BaƱos – School of Environmental Science and Management (UPLB-SESAM) implements the two new projects. One of the projects aims to boost stakeholder engagement and adoption of SARAI systems and technologies through capacity building and communication campaigns. By utilizing various channels for knowledge transfer, the project supports existing SARAI initiatives and responds to the growing interest of local and national agencies in climate-smart agriculture. It actively participates in exhibits, forums, and orientations while conducting training sessions and forming partnerships with interested organizations. These efforts will continue until expected completion in April 2025, ensuring wider adoption and sustained impact of SARAI innovations in Philippine agriculture.

The other project aims to institutionalize the SARAI Integrated Crop Monitoring and Forecasting (ICMF) system through policy advocacy and legislative processes. The project seeks to formalize SARAI as a national program through policy instruments such as an Executive Order and a legislative bill by engaging key stakeholders from government agencies, legislative bodies, and academic institutions. Institutionalizing SARAI will ensure long-term support for Filipino farmers by providing real-time crop monitoring and forecasting information to improve decision-making and agricultural productivity.

As of February 2025, the project established advisory and technical working groups (TWGS), built partnerships with key stakeholders, and conducted advocacy initiatives to promote adoption of SARAI. A legislative measure has also been filed to support its institutionalization. Moving forward, efforts will focus on finalizing stakeholder engagement, producing advocacy materials, and securing policy endorsements. The project is set for completion in November 2025, ensuring the integration of SARAI ICMF into national agricultural policy.

  • Strengthening Tech Transfer and Commercialization

Another DOST-PCAARRD-funded project implemented by PhilRice aims to strengthen technology transfer and commercialization by partnering with local manufacturers and institutions to accelerate rice innovation adoption. Under the project, PhilRice conducted training workshops, facilitated technology licensing agreements, supported commercialization efforts, developed an S&T Park, filed IP applications, and engaged with stakeholders. The project aims to boost rice sector productivity by enhancing industry collaboration and dissemination, promote agribusiness development, and ensure technologies reach end-users efficiently.

Market Outlook

The current rice market remains highly volatile, with prices of special rice reaching Php65 per kg for imported and Php63 per kg for local in January before beginning to decline following government interventions such as the maximum suggested retail price (MSRP), NFA stock releases, and stricter monitoring measures. Despite these efforts, retailer compliance remains a challenge, and logistical issues affect supply distribution. Meanwhile, palay farmgate prices have dropped significantly in Pangasinan, with freshly harvested palay falling from Php27-Php28 per kg in 2024 to Php17.50 per kg in 2025. This decline has prompted farmers to store their harvests instead of selling them immediately, delaying cash flow and potentially affecting future production. Consumers may benefit from gradual price reductions in imported rice, but farmers remain vulnerable to low farmgate prices, rising production costs, and climate-related risks.

Reference:Ā 

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Barro, D.E. (2025, January 31). ā‚±29 rice coming to MerryMart: DA partnership aims to ease inflation burden. Manila Bulletin. Retrieved January 31, 2025 from https://mb.com.ph/2025/1/31/da-taps-merry-mart-to-seal-1st-retail-partnership-to-sell-affordable-rice

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Gabriel-Galban, J. (2025, February 24).Farmers hold off selling palay due to low buying price. GMA Integrated News. Retrieved February 24, 2025 from https://www.gmanetwork.com/regionaltv/news/106744/farmers-hold-off-selling-palay-due-to-low-buying-price/story/?fbclid=IwY2xjawIrjLhleHRuA2FlbQIxMAABHS6ztRG0m4vtLoGh7Nd2ZOWdYJ73KO4hhVM7D_xyc6fd5BYXEHuwl-ZeQQ_aem_BckkL2JMQ85EBR8acy3CLA/

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