DA eyes record-high 20.46MMT rice harvest with RCEF
MANILA, Philippines — The Department of Agriculture (DA) has high hopes that the Philippines’ palay production in 2025 will surpass the record-high 20.06 million metric tons produced in 2023.
Agriculture Secretary Francisco Tiu Laurel said on Monday, January 20, that the early release of P10 billion from the Rice Competitiveness Enhancement Fund (RCEF) under the 2025 national budget will help boost output and reach the target of 20.46 million metric tons.
President Ferdinand Marcos Jr. recently ordered the expedited release of the P10 billion, which is typically scheduled later in the year.
Under Republic Act 12078, or the Agricultural Tariffication Act, the RCEF was extended for another six years and allocated an annual budget of P30 billion to modernize farm equipment, enhance seed quality and improve palay farmers' productivity.
Signed into law on Dec. 9, 2024, the measure tripled the RCEF’s initial annual allocation of P10 billion and extended its use until 2031.
Last year, the country fell short of its 20 million metric ton palay production target, harvesting only 19.3 million metric tons due to a series of strong typhoons that battered the country and damaged palay plantations in the last quarter of 2024.
The DA also noted the El Nino phenomenon in early 2024 that brought a “dry spell” in the country, leading to the importation of 4.75 million metric tons of rice in the past year.
The National Food Authority (NFA) procured 300,000 metric tons of rice in 2024 to maintain buffer stocks for potential food security emergencies, such as price surges or supply shortages.
For 2025, the NFA plans on purchasing a minimum of 300,000 metric tons as well to ensure the price stability of rice in case importers shoot up the price.
Bringing down rice prices
The DA has imposed on Monday a maximum suggested retail price of P58 per kilogram for imported rice in Metro Manila markets to help lower costs.
However, Agriculture Assistant Secretary Arnel de Mesa said on Monday that some retailers continue to sell above the price cap.
“Many markets in Metro Manila are complying with our P58 maximum suggested retail price... Only two markets were found selling at slightly higher prices — P59 at Guadalupe Commercial Complex and P60 at Pasay Public Market,” he said in Filipino.
Meanwhile, Marcos and the DA have announced plans to declare a food security emergency this week, which would allow the NFA to release buffer stocks and stabilize rice prices.
Here are the latest rice prices in Metro Manila markets based on the DA’s monitoring as of January 15:
- Imported Commercial Rice
- Special: P53 to P65 per kilogram
- Premium: P50 to P60 per kilogram
- Well-milled: P44 to P52 per kilogram
- Regular milled: P40 to P48 per kilogram
- Local Commercial Rice
- Special: P55 to P63 per kilogram
- Premium: P48 to P58 per kilogram
- Well-milled: P40 to P53 per kilogram
- Regular milled: P37 to P50 per kilogram
The lowest prices for certain rice grades of local rice are available in only a few markets.
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