Farmers see no improvement in farmgate price of palay after 3 weeks of rice import freeze

THE FARMGATE PRICE of palay (unmilled rice) has not improved despite a 60-day ban on rice imports which had been designed to provide relief for rice cultivators, a farm industry group said.

Jayson H. Cainglet, executive director for Samahang Industriya ng Agrikultura, said farmgate prices remain at P10-P12 per kilogram of palay.

In Tarlac, Pampanga, Nueva Ecija, Pangasinan, La Union, Bulacan, and Isabela, prices have even  gone down to P8 per kilo, he added.

The presence of cheap imported rice in the market is employed as leverage against domestic farmers, allowing traders to negotiate low prices to acquire the domestic harvest. The National Food Authority tries to offer palay buying prices that allow farmers to earn a return on their crop, but can only buy and store a small percentage of the domestic harvest. 

Mr. Cainglet, when asked whether he supported an extension of the ban, which started on Sept. 1, said: “Even if you extend it, peak harvest is over by the end of November.”

Farmers have begun to harvest despite the low farmgate price, he said, with such operations peaking in October, where prices could rise, he said.

He expressed support for the return of the 35% rice import tariff for Southeast Asian grain and 50% for rice originating elsewhere.

“We are also requesting a subsidy support price for palay of P5 per kilo on top of the current price, so farmers may stay competitive in the market,” Mr. Cainglet said. — Andre Christopher. H. Alampay