DA steps in as palay prices drop in some areas

The Department of Agriculture (DA) is taking action to stabilize palay (unhusked rice) prices after declines were reported in several major rice-producing provinces.

Agriculture Secretary Francisco Tiu Laurel Jr. said that with about 77 percent of the harvest completed, farmgate prices have fallen to around P16–P17 per kilo in parts of Nueva Ecija, Pampanga, Isabela, and Cagayan. However, the DA clarified that the drop is not nationwide, noting higher prices of P23–P24 per kilo in areas like Palawan.

To support farmers, the National Food Authority (NFA) has raised its buying price for dry palay to as much as P30 per kilo and plans to increase procurement in affected areas. A new system will also allow farmers to sell directly to the NFA before harvest.

Stakeholders raised concerns about logistical issues, especially a lack of hauling trucks, which delays deliveries. The NFA plans to buy 150 additional trucks this year to address this.

The DA said rice imports will still be needed but will be carefully controlled to avoid further lowering local prices. It is considering limiting import volumes from June to August.

The agency aims to bring farmgate prices to about P22 per kilo by the September to November harvest season. It is also pushing to expand storage facilities and maintain enough rice supply, currently estimated at 70 days.

Rising fertilizer costs due to global tensions and the threat of El Niño are also increasing production expenses and may affect future planting.

The DA is exploring policies such as blending imported and local rice to stabilize retail prices while supporting farmers. It is also tightening import regulations and negotiating long-term supply deals with other countries.

The government said its priority is to keep rice prices stable, protect farmers’ income, and ensure enough supply in the coming months.

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