DA moves to stabilize palay prices nationwide

The Department of Agriculture (DA) is ramping up efforts to protect farmers as prices of palay dropped in several key producing provinces. 

During a meeting with rice industry leaders on April 27, the DA reported that with 77% of the national harvest complete, wet palay prices have dropped to P16–P17 per kilo in isolated areas of Nueva Ecija, Pampanga, Isabela, and Cagayan. 

But the agency clarified that this decline is not a country-wide trend, noting that prices in provinces like Palawan stay strong at P23–P24 per kilo, suggesting the issue is localized. 

“The National Food Authority has increased its buying price for dry palay to as much as P30 per kilo and will intensify procurement in areas where prices have sharply declined to help stabilize the palay market,” the DA said in a statement. 

“The agency is also rolling out a direct purchase order system that will allow farmers to sell directly to the NFA before their actual harvest.” 

Further, the DA said that the NFA will soon procure additional 150 trucks to address the delay of deliveries. 

On the other hand, the DA said that it is considering limiting monthly rice import volumes from June to August to balance supply and farm gate price concerns.  

“We want to strike a balance among all stakeholders in the rice value chain, including consumers, especially amid climatic and geopolitical challenges,” said Tiu Laurel. 

The government is also exploring options, including the strategic blending of domestic and imported rice “to help stabilize retail prices while still prioritizing domestic production, with stakeholders invited to propose blending ratios favoring local output.”

The DA is also targeting a farmgate price of P22 per kilo for the September to November harvest period. 

The department earlier said the price of rice may rise to as high as P62 per kilo by September due to higher fertilizer costs triggered by the ongoing Middle East conflict. —Vince Angelo Ferreras/RF, GMA News