Manila: To support Filipino farmers in the upcoming wet harvest season, the National Food Authority (NFA) on Thursday said it will buy fresh and wet palay (unhusked rice) at PHP21 per kilogram nationwide. This is higher than the PHP17 per kilogram minimum buying price for wet palay.
According to Philippines News Agency, DA Secretary and NFA Council Chairperson Francisco Tiu Laurel Jr. stated that this initiative will help farmers recover from the effects of high production costs. The previous tensions in the Middle East have prompted international fuel price surges, as well as spikes in fertilizer costs. "I've ordered the NFA to set the minimum buying price for wet palay at PHP21 per kilo to help address the higher cost of fertilizer and other inputs," he said.
Under the NFA's flexible PRICERS scheme, the PHP21 per kilo price level for wet palay is considered 'high,' especially during the wet harvest season. In a phone interview, NFA Administrator Larry Lacson mentioned that this will provide local rice producers with a minimum of PHP3 per kilogram profit. Lacson added, "Malaking tulong ito kasi nga ang production cost, it ranges from PHP15 hanggang PHP18, or even PHP19, depende sa lugar (This is a huge help because the production cost ranges from PHP15 to PHP18, or even PHP19, depending on the area). They will have PHP3 hanggang PHP5 per kilo income already."
For the wet season, the grains agency is seeking to procure about 500,000 metric tons (MT) up to 925,000 MT. Lacson, however, said they need to free up NFA warehouses to at least 20 percent capacity to enable maximum volume absorption. This is to ensure intensified palay procurement at the onset of the harvest season beginning in September.
The NFA has around PHP12 billion budget for palay buying, including carry-over funds from last year. About 480,000 MT of palay can be bought from the current budget at a PHP25 per kilo price level, Lacson said. He added, "Mayroon tayong PHP12 billion at kung kukulangin (We have PHP12 billion, and then if it falls short), the Department of Agriculture will support with fresh funds." To date, the NFA has about 350,000 MT of national rice buffer stocks in all NFA warehouses nationwide, which is good for 9 days.
Tiu Laurel, meanwhile, announced the temporary halt in unloading of imported rice in Iloilo during the wet harvest from mid-September until the end of November, as part of intervention measures to protect the income of local farmers and prevent plunging farmgate prices of palay during the peak harvest season. "That is what I can do to ensure that you would earn a decent return from your hard work," he said. Iloilo alone, the rice bowl of the Visayas, accounts for about half of Western Visayas' rice production and more than 5 percent of national output. In 2025, the Philippine government also imposed a temporary ban on the entry of imported rice following reports of plunging prices of wet palay across parts of the country.
