Surge in local rice production expected
MANILA, Philippines – Milled rice production in the Philippines is expected to recover in the coming marketing year, driven by favorable weather conditions and enhanced government support for farmers.
In a report, the US Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) pegged milled rice output at 12.25 million metric tons in the marketing year from July 2025 to June 2026.
This would be 2.1-percent higher than the foreign agency’s estimate of 12 million metric tons (MT) for marketing year 2024 to 2025. Marketing year for rice in the Philippines begins in July, USDA-FAS noted.
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It attributed the output projection to “favorable weather conditions and an increase in government funding for the rice industry,” referring to the higher budget allocation for the Rice Competitiveness Enhancement Fund (RCEF).
The report said increased rainfall between January and March this year would replenish water in dams, ensuring sufficient irrigation for rice plantations, particularly in Central Luzon, the country’s top rice-producing region.
On the other hand, the amended Rice Tariffication Law signed last December tripled the appropriated budget for RCEF from P10 billion to P30 billion annually until 2031.
The multibillion rice fund supports various programs aimed at bolstering farmers’ productivity and increasing their income and competitiveness, such as farm mechanization; inbred rice seed development, propagation and promotion; expanded rice credit assistance and rice extension services.
The rebound in domestic production, alongside higher stock carryover and the maximum suggested retail price (MSRP) for imported rice set by the Department of Agriculture early this year, was also expected to reduce overseas rice purchases in the coming years.
The USDA-FAS said rice imports were seen to drop by 1.9 percent to 5.2 million MT during the reference period from 5.3 million MT previously.
Vietnam and Thailand were to remain the country’s key suppliers due to established trade relationships, geographical proximity and competitive prices.
Imported rice would be levied a 15-percent tariff until 2028 under Executive Order No. 62 signed by President Marcos in December last year. It is subject to periodic review every four months.
Government data showed that local palay output dropped by 4.8 percent to 19.09 million MT in 2024, while the volume of imported rice reached a record 4.8 million MT. INQ
