By Benjamin Cuaresma
QUEZON CITY — The Department of Agriculture is stepping up nationwide interventions after farmgate prices of palay fell to P16–P17 per kilo in parts of Nueva Ecija, Pampanga, Isabela, and Cagayan, even as 77% of the national harvest is already complete.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the drop is “localized” and not a country-wide trend. Prices remain strong at P23–P24 per kilo in provinces like Palawan, indicating pressure in specific areas rather than a broad market downturn.
NFA price hike + aggressive buying
The National Food Authority raised its buying price for dry palay to as much as P30 per kilo and will intensify procurement in areas where prices sharply declined. The agency is rolling out a direct purchase order system letting farmers sell to NFA before actual harvest.
To address delivery delays, the NFA will procure 150 additional trucks this year. Tiu Laurel said the shortage of hauling trucks has limited farmers’ access to government buying stations.
The DA is considering limiting monthly rice import volumes from June to August to balance supply and protect farmgate prices.
“We want to strike a balance among all stakeholders in the rice value chain, including consumers, especially amid climatic and geopolitical challenges,” Tiu Laurel said.
The government is also exploring strategic blending of domestic and imported rice to stabilize retail prices while prioritizing local output. Stakeholders may propose blending ratios favoring domestic production.
DA is targeting a farmgate price of P22 per kilo for the September to November harvest period.
Tiu Laurel earlier identified fair palay prices, the P20-per-kilo rice program, and farm-to-market roads as the DA’s “main test for 2026”. The NFA currently buys under PRICERS at P17/kg for wet palay and P21/kg for dry, but can adjust up to P23/kg wet and P30/kg dry.
An import freeze capped 2025 imports at 3.5 million metric tons, down from 4.8 MMT in 2024, after excessive imports pushed farmgate prices to as low as P8 per kilo in some areas.
Samahang Industriya ng Agrikultura (SINAG) said farmgate prices should reach at least P18/kg for farmers to recover, and called for restoring rice tariffs to 35% from the current 15% to curb imports.
ia/xf
