DA, NFA pressed to keep palay farmgate prices fair, reduce imports
Credit to Author: Dominique Nicole Flores| Date: Tue, 4 Mar 2025 16:12:00 +0800
MANILA, Philippines — With the palay harvest season approaching amid the dry season, the Department of Agriculture (DA) and National Food Authority (NFA) were urged to step up monitoring of farmgate prices, not just retail prices.
In a statement on Tuesday, March 4, Rep. Mark Enverga (Quezon, 1st District) said the government needs to ensure fair pricing at both the farmgate and retail levels.
He said stricter monitoring of palay prices would help prevent traders from undercutting farmers with unfairly low farmgate prices.
Enverga also proposed a real-time digital monitoring system to make farmgate prices transparent and accessible to the public, complementing the DA’s existing retail price tracking.
“Dapat may malinaw na presyuhan para hindi maloko ang mga magsasaka. Kung may tracking ng presyo sa merkado, makikita natin agad kung sino ang nandadaya,” Enverga added.
(There should be clear pricing to prevent farmers from being deceived. If market prices are tracked, it will be easier to identify those manipulating prices.)
Farmers are set to harvest palay in March and April, but Enverga warned of a potential drop in farmgate prices, a concern repeatedly raised by peasant groups.
According to the Philippine Statistics Authority (PSA), some regions recorded farmgate prices of palay below P20 per kilogram in the last quarter of 2024.
In Central Luzon, farmers sold dry palay at an average of P18.17 per kilogram in September, while in Caraga, prices dropped further to P17.72 per kilogram in October.
Enverga, who chairs the House committee on agriculture and food, said these prices are far from sustainable for farmers.
The latest PSA data shows that the national average farmgate price for fancy dry palay stands at P23.17 per kilogram, while other varieties are priced at P20.69 per kilogram. Both figures are lower than the 2024 annual averages of P24.72 and P23.33, respectively.
Enverga warned that without strict government monitoring, some traders may exploit the dry harvest season by bringing down farmgate prices.
Increase NFA’s purchase. He suggested that the NFA procure at least 20% of locally produced rice before farmers start replanting palay during the wet season in May and June. This, he said, would help curb traders' control over price setting.
“Kung bibili ang NFA ng mas malaking bahagi ng ani, hindi madaling madidiktahan ng traders ang presyo. Kapag may kumpetisyon sa pagbili, sigurado ang kita ng magsasaka,” Enverga added.
(If the NFA buys a larger share of the harvest, traders will find it harder to dictate prices. With competition in purchasing, farmers are assured of their income.)
Agriculture Secretary Francisco Tiu Laurel Jr. earlier said the NFA should ideally procure 20% of the country’s total domestic palay production, or around 4 million metric tons. However, the agency currently buys only 3% to 4%.
Enverga stressed that efforts to keep rice prices below P50 per kilogram should be paired with long-term strategies to lessen reliance on imports.
To boost local rice production, he called for expanding fertilizer subsidies, improving post-harvest facilities and implementing mechanization programs to lower palay production costs.
According to the Bureau of Plant Industry, the Philippines imported 4.68 million metric tons of rice in 2024, up from 3.8 million metric tons in 2023. The DA previously attributed the increase to lower local production, worsened by floods and typhoons.
Rice output dropped to 19.3 million metric tons in 2024 from 20.06 million metric tons in 2023. Despite this, the DA is targeting a record-high harvest of 20.46 million metric tons in 2025.
The Philippines has also remained the world's top rice importer since 2023.
Enverga added that the country should strictly enforce the Anti-Agricultural Economic Sabotage Act, or Republic Act 12022, to crack down on cartels and hoarders.
He urged the law’s enforcement group to establish a “clear, enforceable framework” to combat price-fixing and profiteering that harm both farmers and consumers.
The lawmaker also co-chairs the House “Murang Pagkain” Super Committee, composed of five House panels, which has been investigating agricultural smuggling and price manipulation in the country.