Marcos bets big on palay

After years of volatile prices and shrinking profits, farmers in Central Luzon say they finally see a lifeline.

With the government reviving palay procurement and reopening NFA warehouses, hope is returning to the fields.

Officials promise fairer prices; for many farmers, it’s the first reason in years to keep planting.

"Just yesterday, I met with Labor Secretary Bienvenido Laguesma to finalize plans to expand the P20 rice program to minimum wage earners by 2026," Tiu Laurel said during his visit.

He emphasized the need to restore the regulatory powers of the NFA that were removed by the Rice Tariffication Law, particularly its ability to sell rice directly to the public.

“The current discussion with the President centers on restoring NFA’s authority to retail rice and regulate the industry,” he said, adding that a study is underway to allow the agency to set a floor price for palay – similar to the powers once granted to its predecessor, the National Grains Authority, under Presidential Decree 1485.

Farmers speak up

Rico Buco, chair of the Vizal San Pablo Farmers Multipurpose Cooperative in Pampanga, expressed gratitude for the NFA’s resumption of palay procurement at better prices.

“The price at the Bocaue rice center for dried palay is P21 per kilo, which is the highest. But if we bring our supply there, our cooperative might lose money. That’s why we are very thankful that the NFA has reopened,” Buco said.

The NFA currently buys dried palay at P24 per kilo and freshly harvested palay at P19, far higher than the P11 to P13 per kilo offered by some private traders.

“If the NFA hadn’t resumed buying, we would still be suffering from the P11 to P12 price range,” said Lilian Galang of the New Basset Multipurpose Cooperative in San Ildefonso. She noted that since the government stepped in, private traders have been forced to raise their offers to P15 to P16.50 per kilo.

For Alex Briones, a farmer from San Miguel, the intervention came just in time. 

“We were already feeling hopeless during our last meeting. But now, I’m grateful to the administration. At last, we can sell our palay at a good price.”

P20-rice program expands

The government’s pilot P20 rice program, running through December, is expected to benefit up to 3.3 million households (or about 14 million Filipinos) by providing subsidized rice sourced from NFA stocks.

To ensure steady supply, Lacson said the NFA is ramping up its milling operations and clearing space at the San Ildefonso warehouse, which can hold up to 116,000 50-kilo bags.

“We’re doubling, even tripling our efforts to repair 134 warehouses nationwide to prepare for more aggressive procurement in the next harvest season,” he said.

Sustainable support for farmers

For smallholders like Digna Caliwag of the San Miguel Sinagtala Cooperative, NFA's continued buying is critical.

“As long as the NFA keeps buying, traders won’t be able to shortchange us. Please keep your promise not to lower the price so that farmers are encouraged to work harder,” said Caliwag, who farms less than a hectare.

Pedro Alpon, who manages around 10 hectares in San Miguel, said the higher buying price has given farmers renewed hope.

“This has been a huge help for us. We hope the President continues this support so we can fulfill our dreams – to educate our children and improve our lives.”

Buco also stressed that fair income for farmers can help secure the future of Philippine agriculture.

“Our concern is that the younger generation may turn to other jobs. But if they see that farming is profitable, many will continue the tradition,” he said.