By Eileen Mencias
Farmgate prices of palay have fallen to P14 per kilogram, as the National Food Authority (NFA) lacks the capacity to intervene and stabilize market prices, Agriculture Secretary Francisco Tiu Laurel Jr. said.
Tiu Laurel attributed the price drop to declining global rice prices, citing India’s export ban since August 2023 and supply concerns tied to the El Niño weather pattern.
“The NFA’s limited authority prevents it from effectively intervening in the market, allowing traders to push down palay prices,” he said. The agency is authorized to buy freshly harvested palay at P18 per kilo and dry palay at P24, but budget constraints have limited its purchasing capacity.
The NFA is required to maintain a 15-day buffer stock of 555,000 metric tons of rice, which would require procuring 880,000 tons of palay, with a third of it sourced during the current dry harvest season.
Tiu Laurel called for restoring the NFA’s regulatory functions or transferring some of its powers to the Department of Agriculture (DA), arguing that the agency needs additional resources to purchase at least 20% of the palay supply to influence market prices.
“We are working with one hand tied behind our back,” he said. “The NFA must be strengthened, or the DA must be given the authority to intervene.”
With palay prices falling and government intervention restricted, lawmakers face mounting pressure to pass legislation expanding the NFA’s role in stabilizing the country’s rice market.
