President Ferdinand “Bongbong” Marcos Jr. has assured Filipino farmers that palay (unmilled rice) prices will not fall any further despite declining retail rice prices under the government’s P20-per-kilo rice initiative.
In a vlog released Sunday, Marcos emphasized that the National Food Authority (NFA) will continue buying palay at ₱18 per kilo for fresh harvest and ₱19 to ₱23 per kilo for clean, dry grains. “Regardless of rice market prices, the NFA’s purchase rates from farmers will not be reduced,” he said.
This comes as farmers in Pangasinan and other areas recently reported palay prices dropping as low as ₱9 to ₱15 per kilo—below production costs of ₱14 to ₱15, putting farmers at a loss.
Marcos attributed the price squeeze to farmers’ lack of access to drying and processing facilities, which forces them to sell wet palay at lower prices to traders. He announced the rollout of more rice processing plants and dryers nationwide, enabling farmers to dry their palay and negotiate better prices.
Senator Francis “Kiko” Pangilinan called for immediate action, urging the NFA and local governments to buy directly from farmers using the Sagip Saka Law, which allows procurement without public bidding. “If the NFA isn’t ready, LGUs must step in. There is a law, there are funds, use them,” he said.
The NFA recently began deploying trucks to buy palay directly from farmers in low-price areas and plans to expand its fleet to 600 trucks by 2028. It also aims to procure 300,000 metric tons of rice this year to bolster national buffer stocks, sourced primarily from local producers.