MANILA — The Department of Agriculture (DA) is ramping up market interventions as farmgate prices of palay decline in several major producing areas, even as the main harvest season nears completion.

During a consultative meeting with rice industry stakeholders on April 27, Agriculture Secretary Francisco P. Tiu Laurel Jr. said about 77 percent of the national harvest has been completed, with fresh palay prices dropping to P16 to P17 per kilo in some parts of Nueva Ecija, Pampanga, Isabela, and Cagayan.

The agency said the price decline is not widespread, noting that farmgate prices in areas such as Palawan remain higher at P23 to P24 per kilo, indicating localized pressure rather than a nationwide downturn.

To stabilize prices, the National Food Authority (Philippines) has raised its buying price for dry palay to as much as P30 per kilo and plans to intensify procurement in affected areas. The NFA is also introducing a direct purchase order system that will allow farmers to sell to the agency ahead of harvest.

Stakeholders, however, cited ongoing logistical challenges, particularly a shortage of hauling trucks, which delays deliveries and limits access to government buying stations. The NFA is set to procure an additional 150 trucks this year to help address the issue.

Tiu Laurel said rice imports remain necessary but should be carefully managed to avoid further depressing local prices. He noted that earlier import controls helped ensure that around 70 percent of the harvest was sold at favorable levels.

The DA is considering capping monthly rice import volumes from June to August to balance supply and farmgate prices, with the goal of preventing a market collapse while maintaining adequate domestic supply.

The agency is targeting a farmgate price of P22 per kilo for the September to November harvest period, which it considers a critical recovery phase for farmers.

The DA is also pushing to expand storage and warehouse capacity, including strategic stockpiling to secure supply through 2027. Current rice inventory is estimated at about 70 days of consumption.

Tiu Laurel said the Bureau of Plant Industry will tighten accreditation standards, while the government is exploring measures such as blending local and imported rice to stabilize retail prices while supporting domestic production.

“We want to strike a balance among all stakeholders in the rice value chain, including consumers, especially amid climatic and geopolitical challenges,” Tiu Laurel said.

The DA noted that tensions in the Middle East have increased fertilizer and fuel costs, while the threat of a new El Niño episode could affect upcoming harvests and livestock production.

Negotiations for long-term supply contracts with source countries are ongoing, including potential shipments from India, as the government seeks to ensure stable supply without undermining farmers’ income.