Palay prices drop below P13; farmers urge gov't support

Local farmers are experiencing significant losses due to a sharp decline in palay prices, dropping as low as P8 per kilo in some regions and below production costs of around P13 per kilo.

SINAG Executive Director Jayson Cainglet reported that millers are buying palay at maximum prices between P15 and P16 per kilo because imported rice is cheaper, ranging from P26 to P28 per kilo.

Cainglet urged the government to extend support to ensure farmers receive fair compensation for their produce, similar to the consumer benefits provided by the P20/kilo rice program.

Federation of Free Farmers Cooperative chief Raul Montemayor noted that most farmers continue to sell palay to private traders due to limited NFA procurement capacity and budget constraints.

Department of Agriculture spokesman Arnel de Mesa said the agency will request for a balance of P15 billion from excess tariff collections to support rice farmers, emphasizing the need for financial and credit assistance.

The DA maintains gradual increases in rice tariffs from 15% to 35%, aiming not to 'shock' the market.