DEPARTMENT of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. hopes to release a floor price for palay before the next harvest season amid reports of prices going as low as P11 per kilogram.
He said this will be based on the expenses of farmers, taking into account fertilizers and seeds.
“Ang floor price is basically a computation of magkano ba ang naging gastos ng farmer. Let’s say kung sa isang hektarya na ‘yun, kailangan mo ng P30,000 — pataba, seeds tsaka— P35,000. So dapat at least maibalik,” he said. “Depende ‘yan sa presyo ng pataba at seeds at ng labor during the particular harvest season.”
Tiu Laurel was speaking to reporters after an open discussion with Bulacan farmers at the NFA Bulacan Branch Office in Malolos on Monday.
When asked about the timeline of implementation, he replied, “Sana mailabas ‘yan before next harvest season.”
The wet season harvest is expected around September to October.
Tiu Laurel added they are seriously studying the legal avenues to implement the floor price for palay, but the National Food Authority (NFA) would first need its regulatory powers. The DA chief mentioned this after highlighting the need for amendments to the Rice Tariffication Law (RTL).
“Seriously na pinag-aaralan natin ngayon sa DA ‘yan at naghahanap kami ng legal avenues para ma-implement ito if possible. But of course, kahit na may floor price ka, ‘di naman kilala, ‘di nakarehistro ‘yung trader. Napaka-importante talaga ‘yung regulatory powers ng NFA,” Tiu Laurel said.
The DA said the RTL “severely weakened” the NFA’s ability to keep rice prices and supply stable as it was reduced to a “buffer-stocking agency” that could only buy rice for emergency use.
“Ang gusto mas magandang mangyari is puwedeng magbenta ang NFA sa palengke through accredited NFA retail outlets like before, ” Tiu Laurel said. “Kailangan din lahat ng retailers at traders by law ay registered sa NFA para ma-control natin at makita dahil sa ngayon, talagang kulang kami sa NFA kung sinu-sino mga ‘to eh. It’s a cat and mouse game.”
The DA plans to include in its 2026 budget proposal for the General Appropriations Act (GAA) the distribution of 500 additional trucks for farmers.
According to Tiu Laurel, this will be given to specific local government units (LGU) and cooperatives for transport of crops to warehouses.
After receiving reports of low prices from traders for palay, Tiu Laurel told farmers they will go around the country to check on the situation in each area.
The NFA in Bulacan is presently buying palay for P24 per kilogram with a P5 incentive per kilogram for those under the Malolos LGU. (ABS-CBN News)
