Rice farmers enjoy high farmgate prices of palay

CEBU CITY, Philippines — The country’s rice farmers are enjoying high farmgate prices of palay during the current dry season.

As of April 5, the national average price of dry palay is at P19.91 per kilogram (/kg), while fresh palay sells at P17.22/kg, said Agriculture Secretary William Dar quoting the Philippine Statistics Authority.

“These farmgate prices, duly verified by our DA regional field offices, are fairly competitive and give farmers a good return for their investments and hard work,” Dar added.

Northern Mindanao or Region 10 recorded the highest farmgate price of dry palay (14% moisture content) at P25.35/kg during the last week of April.

On the other hand, the lowest price of P17.58/kg was observed in Western Visayas (Region 6).

Aside from Region 10, rice farmers in six other regions enjoyed high average farmgate prices of dry palay, of more than P20/kg, such as Region 11 (P22.93); Region 12 (P21.50); Region 7 (P21); Region 2 (P20.65); Region 1 (P20.30) and Region 5 (P20.25).

“Compared to the prices last season, the figures we are seeing now could be a manifestation of the normalization of the rice industry, after our transition from quantitative restriction to a tariffed trade regime,” Secretary Dar said.

Last year, palay prices were affected by the implementation of the Rice Tariffication Law that lifted restrictions on rice imports, allowing anybody to import with prescribed tariffs.

“We recognize the birth pains of the RTL implementation. That is exactly the reason why we set up and rolled out immediate support mechanisms to help small rice farmers adjust and eventually make them competitive. At this time, we are seeing the initial good results,” Dar said.

He added that the department has been providing assistance to the rice farmers, through the P10-billion Rice Competitiveness Enhancement Fund (RCEF), so they could increase their yields and reduce the cost of production.

The agency has also implemented the National Rice Program for both inbred and hybrid rice production as well as the National Rice Program for both inbred and hybrid rice production Rice Resiliency Project (RRP), which provides for the distribution of free seeds and urea fertilizers.

“Indeed, the current high prices of palay are favorable to our farmers and their families, and we have instructed the National Food Authority to continue buying palay at P19/kg, and at the same time urge the local government units, particularly in major rice-producing provinces, to buy directly from their farmer-constituents,” Dar concluded. /rcg