(MENAFN- Khaleej Times)

Philippine President Ferdinand Marcos Jr. has approved the extension of the rice import ban until the end of the year in a bid to stabilise farmgate prices of palay (rice).

"With the import ban having little impact on retail prices and supply of rice but a significant effect on the farmgate price of palay, President Marcos deemed it necessary to extend the suspension for two more months,”, Agriculture Secretary Francisco Tiu Laurel Jr. announced on Sunday (November 2).

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According to inquirer, the Department of Agriculture (DA) will formally release the Executive Order (EO) implementing the extension on Monday (November 3).

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The initial suspension, enacted through EO 93, ran from September 1 to October 31 and aimed to counter the sharp decline in rice prices ahead of the wet harvest season. While the moratorium temporarily raised farmgate prices, the gains gradually tapered off as the ban's expiration approached.

Laurel noted that harvests are still ongoing in several regions. He said that the extended import ban, combined with programs like Sagip Saka and the introduction of a floor price for rice, should provide continued support to rice farmers struggling with low farmgate returns.

He also noted that he extension is a necessary step to ensure sustained support for local producers, maintain market stability, and allow a more thorough evaluation of the policy's effects.

The DA cited factors such as over-importation, poor-quality harvests, and adverse weather over recent months as key reasons for the depressed farmgate prices, which had fallen to as low as Php8 per kilo in some areas.

Reports from the DA's Regional Rice Program indicated that prices peaked at Php16.50 per kilo between September 8 and 12 before easing to Php13.50 from September 15 to 19. These levels were only slightly above the cost of production, which ranges between Php12 and Php14 per kilo.

June 2024, President Marcos signed EO 62, which reduced rice tariffs from 35 percent to 15 percent until 2028 to help control retail prices and curb food inflation. The current tariff is still reviewed every four months.

Laurel said the extension will allow a fuller evaluation of the ban's effects on both farmgate and retail prices and continue shielding local farmers from downward pressure caused by cheaper imports.

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