DA mulls palay floor price

The Department of Agriculture (DA) is planning to implement a minimum buying price for palay (unmilled rice) for traders to ensure that local rice farmers are paid fairly for their harvest.

In a news forum in Quezon City, DA Marketing and Consumer Affairs Assistant Secretary Genevieve Guevarra said the proposed “floor price” aims to stop middlemen from exploiting farmers by purchasing their palay at unreasonably low prices.

“There are traders who buy palay for as low as ₱11 or ₱12 per kilo,” she noted.

“We are working on establishing a minimum buying price so that we can set not only a standard for the National Food Authority but also for private traders who purchase from our local farmers,” Guevarra said.

She said the DA hopes to implement the floor price before the end of the year.

“This is one of the measures we’re looking at to support the sector and ensure that farmers aren’t taken advantage of,” she added.

Last month, Agriculture Secretary Francisco Tiu Laurel Jr. revealed that traders in at least 32 areas in Luzon were under investigation for buying palay at unreasonably low prices.

He also said the imposition of a floor price was under serious consideration.