Philippine President Ferdinand Marcos Jr. has ordered a 60-day suspension of rice imports starting September 1 to protect local farmers struggling with falling prices. The directive follows consultations with Cabinet members and advice from the Department of Agriculture.

In a separate statement, Marcos said the decision to halt rice imports and delay a tariff increase was a "measured response" to the current challenges faced by rice farmers.

The suspension comes as global rice supplies, including a record 9.08 million tons produced in the Philippines this year, and India's decision to lift its rice export ban, put downward pressure on prices, particularly for Vietnamese DT8 rice—a popular variety in the Philippine market. Prices for this rice have fallen from over $700 per ton earlier in the year to $470 per ton last week.

With cheaper imported rice flooding the market, some private traders are now purchasing rice for as low as 8 to 10 pesos per kilogram, well below the production cost of 12 to 14 pesos per kilogram. Farmers attribute the sharp drop to the influx of cheaper imported rice.

Currently, the cost of 5% broken imported rice has dropped to about 35 pesos per kilogram, or even lower in some cases.

Despite recommendations from the Department of Agriculture to increase the rice tariff from the current 15% to 25%, and later to 35%, Marcos has decided to postpone the decision. The rice import tariffs were reduced last July to address rising rice prices at the time.

Sources indicate that the two-month suspension will allow an assessment of the impact on rice prices and the broader market.