Palay Buying Price Adjustments Amid Rising Costs

NFA moves early on procurement as farmers face rising costs, El Niño concerns, and uncertainty over farmgate prices.

Farmers are given an early indication of how much they can expect to earn from their crops after the National Food Authority (NFA) said it plans to purchase wet palay at ₱22 per kilo and dry palay at ₱27 per kilo for the upcoming harvest season.

Unlike previous harvest cycles, where private traders often set prevailing prices first, the government is announcing its buying rates ahead of large-scale harvesting. The goal is to provide a market benchmark and encourage farmers to continue planting despite rising production costs.

The announcement comes as farmers prepare for the wet season amid concerns over a potentially severe El Niño and higher fertilizer and fuel expenses. Agricultural groups have long argued that uncertainty over farmgate prices discourages production, particularly when input costs continue to climb.

The NFA said it intends to take a more active role in palay procurement this season. During the recently concluded dry harvest period, the agency bought dry palay at prices ranging from ₱25 to ₱30 per kilo after private traders had already entered the market.

To prepare for incoming harvests, the agency is also clearing warehouse space by milling part of its buffer stocks and transferring existing inventories.

Rice remains the country’s most important staple crop, and palay prices are closely watched by farmers and consumers alike.