Group blames cheap imported rice for drop in palay prices

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Federation of Free Farmers Cooperative chair Raul Montemayor warns that farmers are badly affected by the low buying price of palay, which could force them to give up rice farming

MANILA, Philippines – Agricultural group Sinag attributed on Wednesday, July 2, the drop in palay prices, reported to range from P8 to P12 per kilo, to the “flooding” of cheap imported rice in the market.

“Peak harvest is over, yet palay prices continued to drop,” the group said in a statement. They said reports of dropped prices came from farmers based in Bulacan, Nueva Ecija, and Pangasinan.

“Millers are only buying palay, maximum P15 to 16 per kilo because of the influx of imported rice with landed cost of only P26 to 28 per kilo,” they added.

Sinag echoed the call for the institutionalization of a floor price — P17 per kilo for fresh palay and P23 per kilo for dry palay — a higher palay procurement budget at P40 billion, and distribution of cash incentives from excess rice tariff collections.

Federation of Free Farmers Cooperative chief Raul Montemayor pointed out in a radio DZBB interview on Wednesday that majority of farmers continue to sell to private traders who buy at low prices since the National Food Authority (NFA) can only buy palay at a limited amount.

“‘Yung pera nila at saka ‘yung kakayahan nilang kumuha, hanggang 5% lang ng ani,” said Montemayor. “Kaya kahit sabihin nilang hindi magbababa ng presyo ang NFA, hindi nga magbaba pero ilan lang naman ang makakapagbenta sa NFA.”

(Their budget and capacity can only buy up to 5% of the harvest. So, even though they say NFA will not reduce its buying price, only a few farmers can sell to the NFA.)

Montemayor said some farmers have, in the meantime, stored their palay in hopes of better prices but to no avail.

“[M]arami ngang nagsasabi parang kung hindi man sila titigil magtanim, baka i-re-reduce nila ‘yung kanilang pagtatanim dahil bakit pa sila magtatanim palugi naman ‘yung presyo,” he said. Moreover, he said some farmers may be considering selling their land or engaging in other livelihood activities. (READ: DA eyes record-high palay output in 2025 after a year of droughts, storms)

(Many say that they might just reduce planting if prices remain like this.)

Department of Agriculture spokesman Arnel de Mesa said in a press briefing Wednesday that the agency will be requesting for the balance of P15 billion from the excess tariff collections.

The amended Agricultural Tariffication Act specifies that P15 billion out of the P30-billion annual allocation for the Rice Competitiveness Enhancement Fund will serve priority programs for rice farmers including financial and credit assistance.

“The allocation, of course, we cannot say how much will go to each one, that will depend later on with the President’s approval,” De Mesa said in a mix of Filipino and English.

The DA maintains the gradual increase of rice tariffs from 15% to 35% so as not to “shock the market.”

De Mesa said that as of June 26, total rice importations reached 2.17 million metric tons, 7% lower than in the same period last year at 2.34 million metrics tons. – Rappler.com