In various regions across the Philippines, the price of palay, or unmilled rice, has plummeted to as low as ₱11.50 per kilogram, despite the harvest season nearing its conclusion in many provinces.

This decrease has raised concerns among local farmers, as the cost of production has been reported to range between ₱12 to ₱13 per kilogram, according to Larry Lacson, the National Food Authority (NFA) Administrator.

Farmers are reportedly compelled to sell their palay at lower prices due to the market pressure exerted by traders, especially when the NFA cannot purchase rice locally to stabilize prices.

Many farmers find themselves relying on these traders for financial support to acquire fertilizers and other necessary inputs for rice cultivation.

Since January, the NFA has purchased approximately 4.6 million sacks of palay from farmers, surpassing its initial target of 3.6 million sacks.

While the NFA can only buy up to 5% of the country's total rice production, the organization continues to procure rice from farmers to ensure an adequate supply.

In response to the pressing need for storage facilities and drying equipment, the NFA is currently enhancing its warehouse capabilities in preparation for the upcoming harvest season.

The agency operates 14 trucks, with plans to expand its fleet to 600 by 2028 and to establish processing centers equipped with dryers and milling facilities across 36 locations.

Lacson indicated that various factors contribute to the declining prices for farmers, including a lack of adequate storage and drying facilities, falling prices of rice on the global market, and limited avenues for sales.

To address these challenges, the NFA prioritizes the establishment of drying facilities, with hopes that some will be operational in select regions by December.

Additionally, the agency plans to acquire mobile drying stations specifically for areas where farmers face price pressure.

This strategy aims to mitigate the financial burden on farmers and ensure better quality produce is available in the market.

On another front, President Ferdinand Marcos Jr. has assured the public about maintaining the price of rice at ₱20 per kilogram until 2028, despite skepticism regarding the sustainability of this pricing.

Marcos outlined that the government has developed a system aimed at sustaining affordable rice sales for impoverished families for the duration of his administration.

The administration is actively negotiating with other countries to stabilize rice prices and ensure consistent supply.

These bilateral discussions are crucial for ensuring that prices do not fluctuate dramatically, impacting the most vulnerable sectors of society.

The NFA has reported that the current rice supply is sufficient to cover the needs of the population until the onset of the rainy season.

With an estimated 414,000 metric tons of rice in stock, officials express confidence that the inventory can withstand potential market disruptions caused by natural calamities.

Lacson assured that the agency's ongoing initiatives to buy palay at higher prices will continue and that over 100 rice warehouses have been opened to alleviate challenges farmers face in selling their produce.

The NFA is also advocating for legislative measures to restore its regulatory authority in the rice industry, granting it the capacity to purchase rice directly from farmers to achieve self-sufficiency goals.

The Philippines continues to adapt its agricultural strategies in line with market conditions and external economic pressures to support local farmers and stabilize food prices.