6 Key Steps by DA to Stabilize Palay Prices Nationwide This Month

The Department of Agriculture (DA) announced that rice and palay prices are 'expected to stabilize' this month, following a series of interventions, including a four-month halt on rice imports and an executive order for emergency government procurement of palay. Prices began to rebound in recent weeks.

Farmgate Palay Prices Rebound After Import Halt

According to a report by the Philippine Daily Inquirer on March 6, 2026, farmgate prices of palay rebounded after the government imposed a four-month suspension of rice imports. The DA attributed the recovery to reduced supply competition from imported rice.

The move was aimed at protecting local farmers from low prices caused by an influx of imported grains. The DA stated that the rebound supports a recovery in local rice production and farm incomes.

Emergency Government Procurement by EO

President Ferdinand Marcos Jr. issued an Executive Order for emergency government procurement of palay, as reported by Radyo Nating Guimba on March 10, 2026. The order was triggered by falling farmgate prices and a slowdown in miller buying.

The National Food Authority (NFA) is now authorized to purchase palay directly from farmers at support prices, ensuring a safety net for producers. This is part of a broader stabilization plan.

Millers Reduce Volume, DA Warns of Impacts

The DA noted that millers are not buying in large volumes, which could further depress palay prices, as reported by Mindanao Times on March 10, 2026. The DA warned that if this trend continues, it may affect the entire rice supply chain.

"This will certainly affect the prices of palay and eventually rice," the DA said in a statement. The department is monitoring miller behavior and coordinating with local government units to enforce fair trade practices.

Expected Stabilization in March 2026

The DA believes that with the combined measures — import halt, emergency procurement, and price monitoring — palay prices will stabilize throughout March. The department expects a gradual uptick in farmgate prices over the next few weeks.

According to Tribune Philippines on March 10, 2026, a rebound in farmgate palay prices is expected to support a recovery in local rice production. The DA is urging farmers to sell to the NFA and accredited consolidators.

President Marcos Jr. Signs EO for Emergency Procurement

President Marcos Jr. signed the Executive Order to authorize the emergency procurement of palay, as reported by Radyo Nating Guimba. The order empowers the NFA to buy palay at a government-set support price to ensure farmer income.

The procurement will target areas where farmgate prices have fallen below production cost. The DA said the program will run until the end of March, with possible extension if needed.

DA Urges Farmers to Sell to NFA

The DA is encouraging farmers to sell their palay harvest directly to the NFA at designated buying stations. The government support price is set at PHP 19 per kilogram for dry palay, according to DA data.

This price is higher than current market rates in some areas, providing a premium for farmers. The DA assured farmers that payment will be made within 48 hours of delivery.

Implications for Filipino Consumers

For Filipino consumers, the stabilization of palay prices is expected to translate into more stable retail rice prices in the coming months. The DA aims to prevent sharp price spikes that often occur during the summer dry season.

Rice accounts for a significant portion of household spending in the Philippines, making price stability crucial for food security. The DA is also working with local governments to ensure that price stabilization measures reach the market level.

FAQ

What is the government support price for palay?

The government support price for dry palay is PHP 19 per kilogram, as set by the DA. This is the price the NFA will pay to farmers under the emergency procurement program.

How long will the rice import halt last?

The rice import halt was imposed for four months, ending in early 2026. The DA is evaluating whether to extend the halt or adjust it based on market conditions.

When will palay prices stabilize?

The DA expects palay prices to stabilize throughout March 2026, with gradual increases in farmgate prices over the next few weeks.

What should farmers do if millers are not buying?

Farmers are advised to sell their palay to NFA buying stations or accredited consolidators to avail of the government support price. The DA has set up hotlines for assistance.