The Department of Agriculture (DA) said Tuesday that setting a floor price for palay procurement is crucial to encouraging local farmers to continue planting, especially amid reports of buying prices falling below PHP15 per kilogram in several areas.
DA spokesperson Assistant Secretary Arnel de Mesa explained that the proposed floor price would not only guide the National Food Authority (NFA) in its procurement but also influence the prices offered by private traders.
“This is important so that our farmers are assured that their crops will be bought at a price that is profitable or at least sufficient,” de Mesa said. “That way, they will be encouraged to plant again in the next cropping season.”
He noted that the department is studying the matter in relation to the Price Act, the Anti-Agricultural Economic Sabotage Law, and other relevant legislation. According to de Mesa, similar support price mechanisms are already in place in countries like India and Thailand to protect local farmers from being exploited by traders.
The DA is currently investigating the depressed buying prices in 32 areas across Luzon and Mindanao, including provinces in the Cagayan Valley such as Bataan, Cagayan, Allacapan, Kalinga, Nueva Vizcaya, Ifugao, and Quirino. Other areas under scrutiny include Compostela Valley in Southern Mindanao and Sultan Kudarat in Central Mindanao, where traders have reportedly bought palay at just PHP13.50 per kilogram.
De Mesa reiterated that setting a palay floor price is vital to preserving farmers’ planting intentions and ensuring continued local production. He also confirmed that the DA would prioritize procurement in areas where palay prices have dropped significantly.