The National Food Authority (NFA) has announced an increase in its buying price for palay (unmilled rice) to P24 per kilogram for clean and dry produce, and P18 per kilogram for fresh and wet palay. This adjustment aims to provide better support to local farmers and ensure a stable rice supply in the country.
The Department of Agriculture (DA) reported a significant decrease in rice imports during the current local harvest season. As of March 13, 2025, the Philippines has imported 640,915 metric tons (MT) of rice, a notable reduction from the 1.19 million MT imported during the same period last year. This decline is attributed to an increase in local production and a corresponding market adjustment.
Assistant Secretary Arnel de Mesa, the DA spokesperson, commented on the trend, stating that the substantial imports from the previous year, combined with expectations of a good harvest this year, have naturally led to a reduction in imports. He emphasized that this development is beneficial for local farmers, as it reflects a growing reliance on domestically produced rice.
In 2024, the Philippines imported over 4.8 million MT of rice by December 31, underscoring a previous dependence on foreign rice supplies. However, the current decrease in imports suggests a shift towards self-sufficiency. Agricultural economist Samarendu Mohanty praised the Philippines for its “aggressive” market reforms, noting that these measures have contributed to lowering global rice prices.
The NFA’s decision to raise the buying price of palay is part of a broader strategy to support local agriculture and stabilize the rice market. By offering more competitive prices, the NFA aims to encourage farmers to sell their produce to the government, thereby increasing the national buffer stock and ensuring food security.
This move aligns with the government’s efforts to balance the interests of consumers and producers. While higher procurement prices benefit farmers, they also have implications for retail rice prices. The NFA and DA are closely monitoring the situation to maintain affordability for consumers while ensuring fair compensation for farmers.
Overall, the increase in the NFA’s palay buying price, coupled with a decline in rice imports, indicates a positive trend towards strengthening the local rice industry and achieving greater self-reliance in staple food production.
Stay informed on supply chain news at The Supply Chain Report. Free international trade tools are at ADAMftd.com.
#NFA #PalayPriceHike #PhilippinesRiceProduction #SupportLocalFarmers #RiceSelfSufficiency
