DA secures floor price of P17 per kilogram from rice traders for procurement
The Philippine DA secured commitments from millers and importers to maintain minimum palay prices as rice imports are calibrated to stabilize supply. An initial 300,000 MT import is considered for February, with safeguards to protect farmers’ incomes during the peak harvest season.
Department of Agriculture Secretary Francisco Tiu Laurel Jr. said Thursday the agency secured commitments from rice millers and importers to maintain local farmgate prices as the government manages import volumes to stabilize domestic supply.
Traders from major rice-producing hubs including Nueva Ecija, Bulacan and Pangasinan assured the department they would continue to purchase palay at no less than P17 per kilogram for wet crops and P21 per kg. for dry crops.
The price floor is intended to protect local farmers from a price collapse as the industry prepares for the upcoming harvest season.
Tiu Laurel said farmer prices are non-negotiable and that the administration’s priority is to prevent farmgate prices from falling during the peak harvest.
He said the National Food Authority would not compete with private traders as long as buying prices remain at or above the agreed minimum levels.
The Department of Agriculture is considering an initial import volume of about 300,000 metric tons in February.
The volume remains subject to review based on market developments. Importers may now begin applying for sanitary and phytosanitary import clearances, with shipments expected to arrive in phases.
Milling operations in several regions are reliant on newly-harvested palay because stocks remain tight during the seasonal transition.
Harvesting has started in parts of Nueva Ecija and Nueva Vizcaya, with Pangasinan, Ilocos, Bulacan and La Union expected to follow by February.
Larger harvest volumes are projected for mid-March, with milling activity set to increase by April.
The department also confirmed that rice tariffs would not be raised until February.
It said operational details would be managed closely to prevent unnecessary market speculation while ensuring retail prices remain stable without undermining local producers.
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Source : Manila Standard
