Rice farmers can now sell their unhusked rice or palay to the National Food Authority (NFA) at a higher and more competitive rate, following the decision of the National Food Authority Council chaired by President Ferdinand Marcos Jr.
The resolve, which was announced by the President and concurrent Department of Agriculture (DA) Secretary, was made in response to the changing production and market conditions in the country.
The move aims to improve the income of farmers and ensure a sufficient and affordable supply of the staple item.
“Nag-decide kami na itaas ang buying price ng NFA para sa dry palay mula P19 to P23, ang wet palay ay magiging P16 to P19 bawat kilo. Iyon ang naging desisyon ng NFA Council,” the President explained during his announcement.
In line with this, NFA has set the new Equitable Net Weight Factor (ENWF) table for palay, which corresponds to the reference for the pricing scheme based on the moisture content (MC), purity, and damaged and discolored grains parameters in the classification of palay.
“The agency has 267 buying stations nationwide, which readily and aggressively buy palay from our local farmers.”
“The agency has 267 buying stations nationwide, which readily and aggressively buy palay from our local farmers,” NFA Administrator Roderico Bioco said.
Prior to reaching the agreed rate, a proposed buying price of P20 and P25 was suggested by Council members, but was later vetoed as it was deemed too high and may cause a surge in retail prices.
According to Malacañang, the approved rice range balances the commitment of the President to ensure the profit of farmers and mitigate the impact on market prices. Previous NFA buying rate is at P16 (wet) and P19 (dry).
Aside from establishing a higher price range, the government has imposed a price ceiling for rice in early September 2023 to address the surging price of the country’s major staple.
Under Executive Order 39, the mandated price cap is P41.00 per kilogram for regular milled rice and P45.00 per kilogram for well-milled rice.
Under Executive Order 39, the mandated price cap jointly implemented by DA and the Department of Trade and Industry is P41.00 per kilogram for regular milled rice and P45.00 per kilogram for well-milled rice.
The Marcos administration activated the rice price cap to reduce the retail prices of the staple item and penalize hoarding.