The government is moving to give rice farmers greater income certainty ahead of the next harvest season, with the National Food Authority (NFA) set to announce higher palay buying prices months before crops are brought to market.
Agriculture Secretary Francisco Tiu Laurel Jr. said the initiative aims to encourage farmers to continue planting despite growing concerns over a possible El Niño episode later this year and rising production expenses fueled by higher fertilizer and fuel costs.
“The President’s directive is to make sure our farmers earn properly and do not lose money in the next harvest season despite higher fertilizer prices,” Tiu Laurel said during a visit to Nueva Ecija.
Under the plan, the NFA will purchase wet palay at P22 per kilogram and dry palay at P27 per kilogram, establishing an early pricing benchmark intended to guide market transactions and provide farmers with a clearer estimate of potential earnings.
“Even before harvest starts nationwide, the NFA will already set a buying price of P22 per kilo for wet palay and P27 per kilo for dry palay,” Tiu Laurel said. “The goal is to set a benchmark for the industry and help ensure that farmers can earn a reasonable profit.”
The move marks a more proactive procurement strategy by the grains agency as the government seeks to strengthen farm incomes while maintaining stable rice supplies.
NFA Administrator Larry Lacson said the agency plans to enter the market earlier during the upcoming harvest period instead of waiting for private traders to establish prevailing prices.
“Unlike during the dry season when we came in later mainly to match prices already being offered by private traders, we will be more aggressive this coming season. We will be buying early and at higher prices,” Lacson said.
The NFA purchased dry palay at between P25 and P30 per kilogram during the recently concluded dry-season harvest.
To prepare for larger procurement volumes, the agency has begun clearing warehouse space by milling part of its existing buffer stocks and distributing rice through the government’s expanded Benteng Bigas, Meron Na! program.
The Department of Agriculture is also accelerating efforts to expand storage capacity ahead of the September harvest season.
“We are clearing warehouse space so the NFA will be ready to accept more palay from farmers once harvest season begins,” Tiu Laurel said.
The agriculture chief said the government remains committed to helping farmers cope with climate-related risks, higher input costs and market uncertainties as the country prepares for another planting cycle.
