October brought a stark reality for Philippine rice farmers as the average farmgate price of dry palay plummeted 22.7% compared to the previous year, landing at a concerning P15.89 per kilo. This decline represents a significant financial strain on those who cultivate this vital crop, threatening livelihoods across the nation.
While the October price showed a slight 1.9% increase from September, the year-on-year drop is a continuation of a troubling trend. September had already seen a substantial 30.5% decrease, indicating a persistent downward pressure on palay prices.
No region within the Philippines escaped this downturn. Across all fifteen rice-producing areas, average farmgate prices failed to show any year-on-year growth, painting a bleak picture of the national harvest.
The Bangsamoro Autonomous Region in Muslim Mindanao recorded the highest price at P19.62 per kilo, yet even this figure represented a significant fall from both last year’s P24.18 and the previous month’s P20.34. Conversely, Calabarzon suffered the lowest prices, hitting just P12.26 per kilo, down from P18.10 a year ago and P12.70 in September.
Central Luzon, a major rice-producing region, experienced a similar decline, with prices falling from P20.02 to P15.14 per kilo year-on-year, and a decrease from P13.98 the prior month. These figures underscore the widespread impact of the price slump.
Farmer groups are voicing serious concerns, confirming that these statistics reflect the hardships they are already experiencing. Jayson Cainglet, of the Samahang Industriya ng Agrikultura, pointed out that at P15.89 per kilo, farmers are operating at a loss, given production costs of around P15 per kilo.
Cainglet further emphasized that the current price is a substantial P8 below the equitable farmgate price of P23 per kilo stipulated in Executive Order No. 101, highlighting a critical gap between production costs and market returns.
The recent ban on rice imports, implemented in September and extended through the year’s end, has failed to provide the anticipated relief. Raul Montemayor, of the Federation of Free Farmers, explained that the ban’s impact was limited by the large volume of imports already in the country.
Traders, anticipating the potential return of cheaper imports, continued to purchase palay at depressed prices, effectively negating any positive effect from the import restrictions. They prioritized minimizing risk over supporting farmers.
Despite the current challenges, a glimmer of hope appears on the horizon. Montemayor projects a potential price increase in November as supply dwindles, with the harvest season nearing its end and imported stocks diminishing.
The import ban, coupled with tightening supplies, may finally force traders to compete for the remaining palay, potentially driving prices upward in anticipation of scarcity later in the year and into early 2026. This shift could offer a much-needed reprieve for struggling farmers.
