Higher Palay Prices Offer Relief to Filipino Farmers Amid Rising Costs

The Department of Agriculture (DA) welcomed the year-on-year increase in palay prices in August, saying stronger farmgate returns could provide rice farmers with a buffer against rising fuel, transport, and other input costs. In a statement on Saturday, the DA, citing data from the Philippine Statistics Authority, said the national average price of dry palay rose 29.9% year-on-year to P22.16 per kilogram in August from P17.06 a year earlier. However, it was down 1% from P22.39 per kilo in July. “Higher palay prices give our rice farmers some room to absorb the increase in fuel, transport, and input costs,” Agriculture Secretary Francisco Tiu Laurel Jr. said. “We are cautiously optimistic that this will support their planting intentions despite the risk posed by El Niño in the months ahead,” he added. The DA said the price increase was broad-based, with most major rice-producing regions posting double-digit gains from a year earlier. Tiu Laurel, however, acknowledged that not all farmers benefited from the higher prices, particularly those in areas affected by the enhanced Southwest Monsoon (Habagat). “Unfortunately, farmgate prices remained depressed in Habagat-affected areas as excessive moisture lowered the quality of harvested palay,” he said. In Central Luzon, the average farmgate price rose 32% to P20.86 per kilo, while Cagayan Valley recorded a 41% increase to P20.62. CALABARZON posted a 50% increase to P19.02 per kilo. The Ilocos Region registered the biggest year-on-year increase among the regions at 54%, bringing its average price to P23.57 per kilo. Central Visayas had the highest regional average at P28.07 per kilo, up 41%. The DA said that it has already prepared interventions to cushion agriculture from the expected impact of El Niño, particularly on rice production, as part of efforts to limit the economic damage from the climate phenomenon. It said the measures are aimed at protecting farm productivity, supporting farmers through weather-related disruptions, and helping keep rice supplies and prices stable if drier conditions intensify. The DA noted that the combination of stronger palay prices and early El Niño preparations could help support farmers’ planting intentions while strengthening the resilience of domestic rice production against weather-related risks. —VBL, GMA News