PBBM orders DA to set palay floor price

President Ferdinand "Bongbong" Marcos Jr. has ordered the Department of Agriculture (DA) to establish a floor price for palay to protect farmers from declining farmgate prices.

The directive, issued through Executive Order 100, tasks the DA with regularly adjusting this floor price based on production costs, market conditions, farmer welfare, and consumer affordability.

The DA may also consider emergencies or calamities affecting the rice supply chain and palay production; influx of import arrivals that could dampen farmgate price of palay; sharp decline in global prices that may impact the estimated landed cost of rice; and government's capacity to purchase palay at competitive prices and manage market intervention.

The DA shall ensure a fair return of investment to farmers on a regional level by recognizing regional variance in production costs, market conditions, and profit margin, to be reviewed and adjusted before the onset of cropping season or whenever necessary.

A Steering Committee, comprising representatives from various government agencies like the DA, DILG, DTI, DAR, DSWD, and the NFA, has been formed to aid in setting and enforcing the palay floor price.

This initiative by President Marcos aims to stabilize farmgate prices, safeguard farmers from market fluctuations, and bolster the nation's food security, especially during peak harvest seasons.