(PIA-NCR file photo)

QUEZON CITY, (PIA) – A new buying price is set for dry and wet palay in a bid to balance the interests of farmers and consumers while rice prices in the country stabilize. 

In a meeting with the National Food Authority (NFA) Council as the concurrent chairperson, President Ferdinand Marcos Jr. announced that the newly implemented buying price for dry palay will range from P19 to P23, while the procurement price for wet palay is capped at P16 to P19. 

The said decision was based on the improving rate of local rice production in light of the harvest season, as complemented by the changing market conditions, which can be attributed to the parallel rice imports that are expected to supplement the current 7.76 million metric tons (MMT) demand of Filipino consumers. 

Prior to this, the farmgate price at which the government buys rice from farmers ranges from P16 to P19 regardless of whether it is dry or wet. The new price buying price, therefore, will also help increase the income of local rice producers despite the rejection of the initially proposed P20 to P25 buying price. 

“The originally proposed PhP20 and PhP25 buying price are just too high and will spike retail prices,” said the NFA Council, highlighting the need to cater both the welfare of farmers and consumers in deciding the prices of the prime commodity. 

Meanwhile, setting a new buying price range will likewise aid in lowering the fund needed for the procurement of rice supplies by P1 billion. This is on the condition that the ceiling buying price of dry palay will be at P23, with an overall procurement cost of P15 billion. 

“If it is pegged at PhP25, PhP16 billion will be needed for palay procurement,” the NFA added. 

The NFA Council meanwhile stressed that the implementation of a new palay buying price aims to ensure that rice importations will no longer be the primary solution to the insufficiency of rice supplies. 

The Department of Agriculture (DA) expressed its commitment to support the initiative given that the new buying price will be at a level of P23 per kilo of palay, emphasizing the benefit it could provide to the industry of the local food production sector. 

On the other hand, the National Economic and Development Authority (NEDA) said the government will focus on procuring rice in areas with excess supply after meeting the local demand. 

Earlier, the imposition of the mandated price ceiling on rice pursuant to Executive Order No. 39 similarly intended to provide for the steady access of people to affordable rice supply as a basic necessity. 

It can be recalled that the national government, through the Department of Social Welfare and Development (DSWD), extended cash assistance to micro rice retailers to cushion the impact of the price cap. 

At present, the NFA is looking into the possibility of distributing rice stock instead of financial aid to affected rice business owners. (PCO/PIA-NCR)