27/09/2026
Falling peso deepens crisis of import-dependent agriculture, says KMP
The continuing decline of the Philippine peso is adding pressure to the cost of imported food and agricultural inputs, exposing the risks of the country’s growing dependence on imports, peasant group Kilusang Magbubukid ng Pilipinas (KMP) said.
The peso stood at Php62.725 to the US dollar on September 22, according to the Bangko Sentral ng Pilipinas (BSP). A weaker peso means importers need more pesos to pay for the same dollar-denominated commodities, including food, fuel, fertilizer, feeds, pesticides, machinery and other agricultural inputs.
“Kapag humihina ang piso, mas mahal ang binabayaran para sa mga imported na pagkain at kagamitan sa produksyon. Hindi lang konsyumer ang tinatamaan. Lalo ring tumataas ang gastos ng mga magsasaka na gumagamit ng inputs na karamihan ay imported,” said KMP Secretary General Ronnie Manalo.
The Philippines is particularly vulnerable because of its large agricultural trade deficit. In 2025, agricultural imports reached a record US$20.37 billion, while agricultural exports amounted to US$9.25 billion, leaving an agricultural trade deficit of US$11.12 billion. Imports accounted for 68.8% of total agricultural trade, with cereals registering the largest import value at US$3.89 billion.
The dependence on imports has continued this year. In July 2026, agricultural imports reached US$1.90 billion, up 8.4% from the same month last year and accounting for 72.9% of agricultural trade. Agricultural exports, meanwhile, fell 10.3% year-on-year to US$705.23 million, resulting in a US$1.19-billion agricultural trade deficit, 23.7% higher than a year earlier.
“Hindi lang bigas ang usapin. Kasama ang fertilizer, feeds, pesticides, krudo at mga makinarya na halos lahat imported. Kapag mas mahal ang dolyar, tumataas ang halaga ng farm inputs sa piso. Kapag tumaas ang production cost, mas lalong nagigipit ang mga magsasaka,” Manalo said. Average production cost of palay per hectare ranges from Php45,000 to Php60,000 even before the steep peso decline.
The weak peso can also increase the Philippine peso cost of imported rice, although actual domestic prices are also affected by international rice prices, tariffs, freight, domestic supply and other costs. For farmers, higher input costs can further squeeze already tight farm incomes.
KMP said the pressure is compounded by elevated food inflation. The Philippine Statistics Authority (PSA) reported a 6.1% overall inflation in August 2026. Food inflation remained a significant contributor, while rice inflation accelerated to 19.4% in August from 17.1% in July.
“Hindi puwedeng puro importasyon ang alam atupagin ng gobyerno habang humihina ang piso. Kapag umaasa tayo sa imported na pagkain at consumer goods, tayo rin ang nagbabayad kapag tumataas ang halaga ng dolyar,” Manalo said.
KMP said the peso’s weakness underscores the need to cut the country’s dependence on imported food and a halt to agricultural trade liberalization. It called for stronger domestic food production, adequate subsidies and support for farmers, subsidized farm inputs, expanded government procurement of local produce, and policies that protect and develop local agriculture.
“The weakening peso exposes the vulnerability of an agricultural system that depends heavily on imports. Farmers must uphold the strengthening of domestic production and push for genuine land reform and rural industrialization,” Manalo said. # # #