Farmgate prices of palay have started to rise after diving below P10 per kilo a few weeks back.
Palay traders at the Intercity Industrial Estate in Bocaue – a major rice trading town in Bulacan – said the farmgate price of palay in Central Luzon now averages P14 to P15 per kilo for newly harvested crops.
Rice traders also confirmed to The STAR that clean and dry palay is being procured at an average of P18 to P19 per kilo.
Despite the increase, farmers’ group Samahang Industriya ng Agrikultura (Sinag) said the prices are still lower compared to that of the National Food Authority (NFA), which buys fresh palay at P17 per kilo and P23 for clean and dry palay.
Sinag president Rosendo So said the prices are still not profitable for rice farmers, noting that palay farmgate price should be at least P17 per kilo to allow farmers to earn.
So suggested that the government raise the tariff for rice importation to 35 percent as this might pull the farmgate price to the P17-per-kilo level.
NFA administrator Larry Lacson said the grain agency has a P6-billion procurement fund for this harvest season and targets to buy four million bags of palay.