Manila: The Department of Agriculture (DA) is contemplating an initial importation of 300,000 metric tons (MT) of rice in February to stabilize supply and retail prices. This decision follows a consultation with industry stakeholders, who have pledged continued support for local farmers.

According to Philippines News Agency, Agriculture Secretary Francisco Tiu Laurel Jr. has obtained commitments from rice millers and importers to maintain minimum palay (unhusked rice) buying prices during the upcoming harvest season. Traders have agreed to continue purchasing palay at no less than PHP17 per kilo for wet palay and PHP21 per kilo for dry palay, depending on quality. The government is working on fine-tuning rice imports to stabilize supply without affecting farmgate prices.

'Farmer prices are non-negotiable. Whatever import volume we agree on, farmers must be protected,' Tiu-Laurel emphasized, noting that preventing a collapse in farmgate prices during the peak harvest is a priority for the administration. Reports from rice millers in key producing and trading areas indicate that stocks remain tight as the industry transitions toward the incoming harvest season.

In regions like Nueva Ecija and Nueva Vizcaya, harvesting has commenced, with more areas, including Pangasinan, Ilocos, Bulacan, and La Union, expected to start by February. Larger harvest volumes are anticipated by mid-March, with milling activity projected to increase further by April.

To address retail price pressures, the DA consulted importers on appropriate February volumes, with traders presenting various estimates. Despite differing views, traders from Nueva Ecija, Bulacan, and Pangasinan have assured that they will continue buying palay at or above the agreed minimum prices, even as imports arrive.

Tiu Laurel reiterated that the National Food Authority (NFA) will not compete with private traders, provided buying prices remain at or above the agreed minimum levels. He also indicated that rice tariffs will not be increased until February and that final operational details will be managed to prevent unnecessary market speculation.

Importers can begin applying for sanitary and phytosanitary import clearances, with shipments expected to arrive by early February, subject to an ongoing review based on market developments.