CEBU, Philippines — Rice prices in Cebu City have increased by up to ?130 per sack within a week after the national government ordered a 60-day suspension of rice imports.
Erwin Goc-ong, head of the Cebu Market Vendors Multipurpose Cooperative (CMVMC), said importers had known of the impending ban as early as July, when they stopped receiving import permits. Stocks began depleting then, but Goc-ong noted that price hikes only happened after the Executive Order (EO) was issued.
From ?1,500 per sack, prices rose to ?1,540—a ?40 increase—just a day after the EO was released. Two days later, prices climbed to ?1,580 and then to ?1,630, marking a total ?130 increase in a week.
“Kay wala naman sad silay (importer) stocks, ang uban nibalibad na gyud,” said Goc-ong.
He said some retailers have already adjusted their prices by ?2 to ?3 per kilo and warned that imported rice could rise by as much as ?4 per kilo by September. The price jump, he added, applies to only one brand of imported rice, as other varieties are already out of stock.
Goc-ong also feared that locally produced rice prices could follow. “Ambot lang kaha this time kay kasagaran mahitabo sa una, mosaka ang import(ed), mosaka sad ang local.”
With no import permits from the Department of Agriculture (DA), Goc-ong said consumers will inevitably turn to local sources, increasing demand and triggering price hikes.
He admitted Cebu’s rice market is heavily dependent on imports. “Dili gyud. We need imports every year,” he said, noting that Cebu is not a rice-producing province and relies on shipments from Luzon and other national sources.
At least 70 percent of the rice sold at Cebu City’s Carbon Market is imported, Goc-ong said, adding that local production alone cannot meet demand. Most importers typically bring in up to 20 million bags of rice. “Dako kaayo’g kulang… Millions.”
While the Philippines is a rice-consuming country with abundant sunlight, Goc-ong said climate change has given Thailand and Vietnam an advantage in cultivation, as they experience fewer typhoons.
He also noted that farmers in Thailand and Vietnam receive strong government support to improve their farming practices, which has given them an edge over Filipino farmers.
President Ferdinand R. Marcos Jr. ordered the 60-day import suspension effective September 1 to protect farmers from low palay prices. The directive was issued after consultations with Cabinet members during his state visit to India from August 4 to 8, following a recommendation from Agriculture Secretary Francisco Tiu Laurel Jr.
The DA reported that bumper harvests worldwide, the lifting of India’s export ban, and a record-high 9.08 million metric tons of palay produced locally in the first half of the year have put downward pressure on prices, especially from exporting countries.
“With cheaper imports flooding the market, reports indicate that some private traders are now buying palay for as low as ?8 to ?10 per kilo, well below the production cost of ?12 to ?14 per kilo. Farmers have attributed this sharp decline to the influx of cheaper imported rice,” the DA said in a statement.
In Cebu City, Goc-ong said they remain hopeful, as the lean months of June to August typically rely on local harvests, with bigger yields expected in September.
“Basin mao ni ilang gisaligan nga wala sila mahadlok nga mosaka tungod kay mo padong man ang harvest season,” he said, noting that price increases may not continue in the coming months
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