DA lowers NFA's palay buy price to PHP23-25/kg

The Department of Agriculture (DA) plans to lower the National Food Authority's (NFA) buying price of palay to between PHP23 and PHP25 per kilogram for dry and clean grain, aiming to reduce retail rice prices during the wet harvest season.

This decision follows a decline in world rice prices but high local prices that affect market stability; the NFA's new pricing mechanism will gradually bring down palay costs over the next eight to ten days.

DA Secretary Francisco Tiu Laurel Jr. emphasized that this reduction aims to balance financial gains for Filipino farmers with consumer demands for more affordable rice, ensuring a decent return for farmers even at P21 per kilo.

NFA Administrator Larry Lacson assured that this adjustment will be calibrated based on the quality of palay and prevailing market conditions, maintaining flexibility while supporting domestic farmers.

The NFA aims to purchase between 6.4 million and 8.7 million bags of palay before the end of the year, equivalent to up to 435,000 metric tons (MT) of palay, as part of efforts to stabilize rice prices and support domestic farmers.