The Department of Agriculture (DA) has launched an investigation into 32 areas across Luzon where traders are allegedly purchasing rice from farmers at prices lower than production costs — a practice that could leave local producers at risk of severe financial loss or bankruptcy.
Agriculture chief Francisco Tiu Laurel Jr. on Monday confirmed that the department has identified several hotspots where these questionable transactions have been taking place. While the identities of the involved traders are still being verified, Laurel emphasized that action is underway.
“We already have a list of areas where traders are really buying rice from farmers at a very low price,” said Laurel in a mix of English and Filipino. “We have identified 32 areas in Luzon. The DA is currently investigating who these traders are.”
The move signals a push by the DA to strengthen price protections for farmers, many of whom continue to suffer from fluctuating market rates and middlemen who take advantage of harvest seasons to buy low and sell high.
Laurel also revealed that the department is studying the imposition of a national floor price for rice, a measure designed to safeguard farmers' income and ensure sustainability in the country’s rice production sector.
“We’re looking for a legal path. We might issue a policy in the future. This is still under study, but the idea is to set a floor price,” he said. “Hopefully, we can find a law or ruling that will allow us to penalize traders who do not follow the floor price.”
Currently, the DA has recommended that fresh palay (unmilled rice) should be bought at no less than ₱20 per kilo, a figure deemed viable to cover most farmers' production costs and provide a modest profit.