On September 1, 2025, the Philippine Government officially implemented a 60-day suspension of rice imports to protect farmers during the harvest season. This measure reflects an effort to balance the goal of stabilizing rice prices for farmers with the need to ensure national food security, in the context of the Philippines being the world’s largest rice importer and facing pressures from cheap imports, low domestic paddy prices, and limited investment in agricultural infrastructure. In the short term, the suspension has shown positive effects, with domestic rice prices remaining stable and paddy prices improving.

On September 1, 2025, the Philippine government officially implemented a 60-day temporary ban on the import of regular and well-milled rice, effective until October 30, 2025. This measure was enacted under Executive Order No. 93 to protect local farmers during the peak harvest season. Specialty rice varieties such as Japonica, Basmati, and glutinous rice are exempt, and shipments ordered before August 31 are permitted to enter through four major ports (Manila, Davao, Cagayan de Oro, and Cebu) until September 15. This action is part of a broader effort to balance food security with support for the domestic agricultural sector, especially given the Philippines' status as one of the world's largest rice importers.

1. Reasons for the Measure

The Philippine rice industry faces significant challenges, leading to increasing reliance on imports. According to a report by the Integrated Rural Development Foundation, policy failures, underinvestment, and uncontrolled land conversion have placed the agricultural sector in its "most vulnerable position in decades." Key issues include:

• High import dependence: In 2024, the Philippines became the world's top rice importer with 4.7 million metric tons, with projections of 5.5 million metric tons by 2026 (per the U.S. Department of Agriculture). The reduction of tariffs from 35% to 15% last year encouraged imports from countries like Viet Nam and Thailand, flooding the domestic market with imported rice.

• Impact on farmers: The price of palay (unmilled rice) has dropped to 8-10 pesos/kg in some areas, below the production cost of 12-14 pesos/kg. This discourages older farmers and drives youth away from agriculture. Additionally, "rice cartels" manipulate prices, leaving farmers in debt while consumers face high retail prices.

• Structural issues: Underinvestment in outdated irrigation systems, access to high-yielding seeds, and agricultural research and development (only 0.3% of GDP, below UNESCO's 1% benchmark) exacerbates the problem. The conversion of 520,000 hectares of prime rice land into commercial real estate has resulted in a loss of 3.3 million metric tons of potential milled rice annually.

The temporary import ban aims to stabilize palay prices during the wet harvest season, when domestic supply is abundant. The government targets a record 20.46 million metric tons of palay production in 2025, with 9.08 million metric tons harvested in the first half and 11 million metric tons projected for the second half.

2. Legal Basis

The Philippines' temporary rice import ban is grounded in the following legal frameworks:

(i) Rice Tariffication Law (RA 11203): This law allows the government to impose temporary import bans to protect local farmers when necessary, particularly when excess supply causes sharp price declines. RA 11203 replaced the import quota system with tariffs but retains the right to intervene temporarily to support agriculture sector.

(ii) Anti-Agricultural Economic Sabotage Act (RA 12078): Section 3 of this law grants the President the authority to suspend or ban rice imports for a limited period or specific volume when excess imported or local rice supply leads to abnormal price drops.

Meanwhile, from an international law perspective, Article XI of the General Agreement on Tariffs and Trade 1994 (GATT 1994) prohibits WTO members from applying quantitative restrictions on the importation of any product of any other contracting party. However, as of 5 September 2025, no formal concerns have been raised at the WTO regarding this measure.

3. Initial Impact

Based on data monitored by the Philippine Department of Agriculture (DA) during the first two days of implementation (September 1-2, 2025), the measure has shown positive initial signs without major disruptions:

• Stable Local Rice Prices: Retail prices for local premium rice stand at 50 pesos/kg, well-milled at 43 pesos/kg, and regular milled at 38 pesos/kg in Metro Manila markets. No price increases have been observed, thanks to ample reserves and a robust harvest.

• Slight Increase in Imported Rice Prices: Some imported rice varieties have risen, with premium rice at 45 pesos/kg, well-milled at 44 pesos/kg, and regular milled at 37 pesos/kg. However, prices remain within the suggested range (42-45 pesos/kg), with no significant volatility. The DA reports that the market has adapted to the ban without disruption, with existing shipments allowed until September 15.

• Improved Palay Prices: Prior to the ban, palay prices hit record lows due to cheap imports, including after India's export ban was lifted. Post-announcement, prices have risen to 14-15 pesos/kg in some areas.

The DA is closely monitoring the situation and will convene with the Department of Trade and Industry (DTI) and the Department of Economy, Planning, and Development (DepDev) within 30 days to assess the impact and recommend whether to extend or shorten the ban.

Overall, the 60-day temporary rice import ban is a strategic move by the Philippine government to shield the domestic agricultural sector from an influx of cheap imports. The initial positive effects, including stable prices and improved palay rates, suggest short-term success. However, for long-term sustainability, the Philippines must pursue deeper reforms, such as increased infrastructure investment, anti-cartel measures, and land protection.