RICE traders have committed to buy fresh, wet palay (unhusked rice) at a minimum price of P17 per kilogram (kg) and the clean, dry kind at P21/kg, the Department of Agriculture (DA) said on Thursday.
The assurance came after Agriculture Secretary Francisco Tiu Laurel Jr. met with stakeholders last week for consultations on ways to improve the rice industry.
The National Food Authority (NFA) wet palay from farmers at P17 to P23/kg and dry palay at P23 to P30/kg.
Wet palay must be dried within 24 hours to prevent spoilage, while dry palay can be stored for six to 12 months if moisture content is kept below 14 percent.
Data from the Philippine Statistics Authority showed that the average farmgate price for dry palay last December was P18.01/kg. Annual average price was P17.70/kg for 2025, the lowest in three years or since the P17.44/kg in 2022.
In mid-2025, farmers reported palay farmgate prices dropping to as low as P8/kg in some areas in the country, which the DA attributed to a surplus in imports. As a remedy, President Ferdinand Marcos Jr. imposed a 60-day rice import moratorium from Sept. 1 until December.
At the meeting, Tiu Laurel said that despite differing opinions, rice traders from Nueva Ecija, Bulacan, and Pangasinan pledged to continue buying wet palay at a minimum of P17/kg and wet palay at P21/kg, even with the lifting of the imports moratorium.
“Farmer prices are non-negotiable. Whatever import volume we agree on, farmers must be protected,” Tiu Laurel said, stressing that the government wants to avoid a crash in farmgate prices during harvest season.
Palay harvest has started in some provinces, including Nueva Ecija and Nueva Vizcaya, and in February in Pangasinan, Ilocos, Bulacan, and La Union, the DA noted, adding that it will peak in mid-March, with milling to follow in April.
The NFA won’t compete with private traders so long as farmgate prices remain at or above the minimum, Tiu Laurel said.
Also at the meeting, current market conditions and inventory movements were discussed, with stakeholders saying that stocks are tight as harvest season approaches, and that milling in several provinces now dependent on newly-harvested palay.
Rice millers and importers have likewise committed to support local farmers as the government works on better management of rice shipments to stabilize supply without compromising farmgate prices, the DA said.
