Manila: The Department of Agriculture (DA) on Wednesday cautioned rice traders against exploiting the government's 'Benteng Bigas Meron (BBM) Na' program to justify slashing their buying prices from farmers. This came amid reports that palay (unhusked rice) prices in Victoria, Tarlac have dropped to as low as PHP13/kg - allegedly due to BBM Na's low retail price, which is even cheaper than rice bran.

According to Philippines News Agency, Agriculture Assistant Secretary Arnel de Mesa stated in a press briefing that traders cannot use the PHP20 rice price as a basis to lower their buying prices from farmers. He emphasized that BBM Na rice is sourced from the National Food Authority (NFA) and is subsidized, with the NFA purchasing palay at PHP19 to PHP24 per kilo.

De Mesa clarified that the subsidized price of PHP20 rice should not be used as a reason to justify lower purchasing prices from farmers. He reiterated that the PHP20 rice is procured by the NFA at a higher price, making it an unjustifiable reason for traders to undercut prices.

In response to these reports, De Mesa mentioned that Secretary Francisco Tiu Laurel Jr. has instructed the NFA to assess areas where traders are offering low prices and consider possible interventions. He assured that any abuses or violations would be thoroughly investigated.

The Samahang Industriya ng Agrikultura (SINAG) attributed the decline in palay prices to continued imports and NFA's limited intervention capacity. Local palay prices have reportedly dropped to PHP8/kg to PHP12/kg in Bulacan, Nueva Ecija, and Pangasinan, while prices in Mindanao have fallen to PHP7/kg.

Despite these challenges, De Mesa emphasized that 75 percent of rice consumption in the country still comes from local sources and that local rice prices remain competitive. According to data from the DA Bantay Presyo, as of June 30, prices of premium imported rice range from PHP44 to PHP47/kg, well-milled rice from PHP38/kg to PHP48/kg, and regular-milled rice from PHP35/kg to PHP45/kg. In comparison, premium local rice prices range from PHP42/kg to PHP60/kg, well-milled from PHP37/kg to PHP52/kg, and regular-milled rice from PHP30/kg to PHP45/kg.