The Department of Agriculture (DA) said May 3 it is stepping up market interventions as palay prices weaken in several major producing provinces, even as the main harvest season draws close to completion.
During a recent consultative meeting with rice industry stakeholders, the DA noted that with about 77 percent of the national harvest already in, fresh palay prices have slipped to P16–P17 per kilo in isolated areas in Nueva Ecija, Pampanga, Isabela, and Cagayan.
But the downturn is not nationwide. Farmgate prices in areas like Palawan remain significantly higher at P23–P24 per kilo, pointing to localized price pressure rather than a systemic collapse in the market.
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 agency is also rolling out a direct purchase order system that will allow farmers to sell directly to the NFA before their actual harvest.
Stakeholders, meanwhile, flagged persistent logistical bottlenecks—particularly the shortage of hauling trucks—which continues to delay deliveries and limit farmers’ access to government buying stations. This logistical problem will be partly addressed by the procurement of additional 150 trucks by NFA this year.
On the supply side, DA Secretary Francisco Tiu Laurel Jr. reiterated that rice imports remain necessary but must be carefully managed to avoid further depressing local prices. He noted that earlier import controls helped ensure that about 70 percent of the harvest was sold at favorable levels.
However, rising fertilizer costs driven by global tensions, along with El Niño risks, are raising production costs and may discourage planting in the next cycle, the DA said in a press release.
It said it is considering limiting monthly rice import volumes from June to August to balance supply and farm gate price concerns. The objective is to prevent a price collapse while ensuring adequate domestic supply.
The agency is targeting a farmgate price of P22 per kilo for the September–November harvest period, which it sees as a crucial recovery window for farmers.
The DA is also pushing for expanded storage and warehouse capacity, including strategic stockpiling to secure supply up to 2027. Current national rice inventory stands at roughly 70 days of consumption.
Tiu Laurel assured stakeholders that the Bureau of Plant Industry will tighten accreditation standards.
At the same time, the government is exploring policy options, such as blending local and imported rice to help stabilize retail prices while still prioritizing domestic production, with stakeholders invited to propose blending ratios favoring local output.
“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.
Tensions in the Middle East had raised the cost of fertilizer and fuel for farm machineries while a new El Niño episode threaten upcoming crop harvest and livestock production. ||
