The chairman of the Senate agriculture committee pushed for the issuance of an executive order (EO) to establish a floor price for palay (unmilled rice) for government purchases for its rice distribution programs.
The call by Senator Francis Pangilinan followed calls by various farm groups for the floor price and amid testimony by Nueva Ecija farmers about how the scandalously low pricing set by traders leaves farmers in debt because the farmgate is way below their production cost.
The executive order for a floor price, according to Pangilinan, would apply to all government purchases and align with the full implementation of the Sagip Saka Act or Republic Act 11321, to ensure that farmers receive fair compensation for their hard work, especially in light of declining farmgate prices.
‘Kapag ang palay ay binili ng walo hanggang sampung piso kada kilo habang ang production cost ay katorse hanggang kinse pesos, kulang ang anumang ayuda para punan ang lugi [When palay is being bought at only P8 to P10 per kilo while it costs farmers P14 to P15 to produce it, no amount of aid will make up for their losses],’ Pangilinan said over the weekend.
‘Hindi nila kailangan ng abuloy. Kailangan nila ng patas na presyo sa bunga ng kanilang lakas . . . Kaya ang isa sa matagal na nating panawagan ay floor price, para pumatas naman ang laban ng mga nagpapakain sa atin (Our farmers don’t need charity. They need fair price for the fruits of their labor . . . That’s why a floor price is what we have been calling for, so that the people who feed us may have a fighting chance.’
Earlier, Danilo Bolos, a rice farmer from Nueva Ecija told a House of Representatives’ hearing that what rice farmers need is higher buying prices for palay, not another wave of cash assistance. Bolos told the House committees on agriculture and food and ways and means that the practice of providing them aid makes them look like beggars.
Pangilinan said the EO he is seeking ‘is proof that the government is listening to the concerns of our farmers, and we appreciate their hard work.’
Speaking mostly in Filipino, he said, ‘Our rice farmers will have some breathing space with the floor price. They will have some protection from traders who capitalize on their desperation. This is one of the many steps so that our rice farmers will rise from subsistence to abundance agriculture.’
He said a floor price will stabilize the market, protect farmers from exploitative traders, and encourage continued rice production, a critical measure as the country pursues long-term food security.
Pangilinan pointed out that a month after a temporary ban was imposed on rice imports, farmers are still grappling with market realities.
‘The farmers are still forced to accept notoriously low prices for their harvest. They never have enough to pay for all the costs of planting. Not even for their family’s own consumption.’
Speaking in Filipino, he estimated that every year, ‘tons and tons of rice are bought by the DSWD, DOH, and DepEd for their programs. In the 2025 budget of DILG alone, over P278 million is allocated for the rice subsidy. If we combine that with the rice purchase schemes of the LGUs, that means a massive amount-and if we implement the Sagip Saka Act, that is money going to the pockets of farmers.’