DA moves to stabilize palay prices

MANILA, Philippines — The Department of Agriculture is stepping up market interventions as palay prices weaken in several major rice producing provinces, even as the main harvest season draws close to completion.

With about 77 percent of the national harvest already in, the DA said that fresh palay prices have slipped to P16 to P17 per kilo in isolated areas in Nueva Ecija, Pampanga, Isabela and Cagayan.

However, the agency noted that the downturn is not nationwide as farmgate prices in areas like Palawan remain significantly higher at P23 to 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.

The DA said that this logistical problem will be partly addressed by the procurement of additional 150 trucks by NFA this year.

On the supply side, DA chief 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 is considering limiting monthly rice import volumes from June to August to balance supply and farmgate price concerns.