The Department of Agriculture (DA) has asked the National Bureau of Investigation (NBI) to look into social media claims that at least three farmers in Nueva Ecija took their own lives due to low palay prices.
In a letter sent to the NBI on Monday, Agriculture Secretary Francisco P. Tiu Laurel Jr. urged a thorough investigation. He also asked the public to respect the grieving families, vowing to provide any necessary assistance.
Laurel stated that these claims contradicted official accounts from law enforcement and the DA’s investigative reports, including statements from the families of the deceased.
He also addressed the challenges faced by the National Food Authority (NFA), revealing in a statement on Tuesday that the agency has been unable to buy significant volumes from farmers due to budget constraints.
“Moreover, the agency’s regulatory powers have been stripped, hindering its ability to manage rice inventories effectively through regular sales to the public,” the DA said.
Laurel explained that with its “limited authority,” the NFA cannot intervene in the market effectively, allowing traders to suppress palay prices. “This has led to the current farmgate prices dropping to as low as P14 per kilo,” he added.
The agri chief also pointed out that the decline in local prices is tied to a global market correction, wherein for more than two years, global rice prices were at their highest, driven by India’s ban on non-basmati rice exports in August 2023, which was lifted in September, and increased global demand due to anticipated supply shortages caused by the El Niño phenomenon.
“We are doing this with one hand tied behind our back. We need some of the NFA’s powers back—if not to the agency itself, then to the DA—to better address the challenges we face,” Laurel said.
He added that the rice agency needs additional resources to acquire around 20 percent of the supply to influence market prices.
To support local producers, NFA Administrator Larry Lacson encouraged farmers in Regions 1, 2, and 3 to sell their harvests directly to the agency, which has a buying price of P19 per kilo for fresh palay in those regions.
NFA to rent additional warehouses
Meanwhile, Palace Press Officer Undersecretary Atty. Claire Castro clarified that NFA storage is not full and that the delay is due to the peak harvest season. This followed concerns from farmers regarding the NFA’s inability to purchase their palay due to full storage facilities.
“We spoke with [NFA Administrator Larry Lacson], and he said that there are no warehouses that are completely full, and all farmers just need to wait in line because it's the peak season,” she said in Filipino during a press briefing on Tuesday. She added that the NFA will rent additional warehouses if necessary.
“For all farmers who wish to sell their palay, if they have the opportunity to wait their turn, the NFA will buy it. We will not refuse anyone who wishes to sell their produce,” she added.
Castro also noted that fresh palay is purchased at P19 per kilo in Regions 1, 2, and 3, and at P18 per kilo in other regions, while clean and dry palay is bought at P24 per kilo.