President Ferdinand R. Marcos Jr. has ordered the establishment of a floor price for palay to protect farmers from abusive traders during the harvest season, signaling a more interventionist approach in the agricultural sector.
In a high-level meeting at Malacañang Palace, President Marcos instructed the Department of Agriculture (DA) to coordinate with the Office of the Executive Secretary and Senator Francis Pangilinan’s office to draft an executive order setting a palay buying floor price. This move aims to stabilize farmgate prices and prevent traders from underpricing farmers’ produce.
The President also ordered the full implementation of the Sagip Saka Act of 2019, allowing government agencies and LGUs to buy directly from farmers and fisherfolk—ensuring a fairer, middleman-free supply chain. The program will align with the Benteng Bigas initiative, which sells rice at P20 per kilo to a target market.
In addition, Marcos called for a review of the National Food Authority (NFA) charter and amendments to the Rice Tariffication Law, which extended the Rice Competitiveness Enhancement Fund (RCEF) until 2031. He emphasized that the NFA should return to its original role of price stabilization—not importation.
The establishment of a palay floor price marks a strategic shift toward stronger government support for domestic farmers. However, sustainability hinges on clear funding mechanisms and effective implementation. If successful, this could shield farmers from volatile market forces—but risks inefficiency without corresponding reforms in rice productivity, logistics, and cooperative development.
