- The Philippine government is proactively setting pre-harvest rice buying prices to protect farmer incomes amid the threat of El Niño and rising input costs.
- The National Food Authority will establish benchmark prices for wet and dry palay before harvest, aiming to ensure rice farming remains profitable and provide price visibility for farmers.
- The NFA will adopt a more aggressive procurement strategy this season, buying rice earlier and at higher prices than in previous seasons.
The Department of Agriculture (DA) said its aim was to reassure rice farmers that planting will remain a viable and profitable undertaking in the coming season, while preparing for potential supply pressures from El Niño and higher production costs.
“The president’s directive is to make sure our farmers earn properly and do not lose money in the next harvest season despite higher fertiliser prices,” said agriculture secretary Francisco P. Tiu Laurel Jr.
The National Food Authority (NFA) will set its palay buying prices before harvest begins, giving farmers early visibility on potential returns and establishing a benchmark for private traders.
“Even before harvest starts nationwide, the NFA will already set a buying price of PHP22 (US$0.39/kg) per kilo for wet palay and PHP27 (US$0.48/kg) per kilo for dry palay. The goal is to set a benchmark for the industry and help ensure that farmers can earn a reasonable profit,” Tiu Laurel said.
NFA Administrator Larry Lacson assured that the grains agency would play a more active role.
“Unlike during the dry season when we came in later mainly to match prices already being offered by private traders, we will be more aggressive this coming season. We will be buying early and at higher prices,” Lacson said.
The policy shift comes as the dry season harvest winds down, with the NFA having procured dry palay at PHP25 to PHP30 (US$0.45–US$0.54/kg) per kilo.
Lacson added that the NFA was milling a significant portion of its buffer stocks to free up warehouse space for incoming harvests.
Stepping up inspections
While the government is moving to protect farmer incomes, it is also tightening enforcement at the retail level to ensure consumers benefit from lower rice prices.
It said it has intensified market inspections across the country to enforce the PHP50/kg (US$0.89/kg) price ceiling on imported rice with 5 per cent broken grains.
Recent inspections in Metro Manila and other regions uncovered cases of overpricing and mislabelling, with authorities discovering rice being sold for prices exceeding the price cap and mislabelling of rice types.
It has already issued several notices of violation to retailers found flouting the government order.
“As long as this price cap is in effect, we will continue conducting surprise inspections across markets nationwide,” said assistant secretary Wiann Angsiy.
The DA stressed that its aggressive measures supported the government’s strategy to curb food inflation and improve access to affordable rice.
Retailers have raised concerns that the price cap could squeeze margins, pointing to some suppliers that were selling imported rice at high prices.
Angsiy said the authorities would investigate these suppliers.
“If retailers are saying they cannot earn because of the prices imposed by suppliers, they have to identify those suppliers so we can go after the importers or wholesalers who may be selling way above the acceptable prices,” she said.
