DA to Lower NFA’s Palay Buying Price to P23-P25 per Kilo

The Department of Agriculture (DA) announced a plan to reduce the National Food Authority’s (NFA) palay buying price to between P23 and P25 per kilo. Agriculture Secretary Francisco Tiu Laurel Jr. stated that this adjustment aims to balance the financial returns for farmers while addressing consumer demands for more affordable rice.

The NFA previously raised its buying price range to P17-P30 per kilo earlier this year to compete with private traders amid rising rice prices driven by El Niño and India’s export restrictions. With India lifting its rice export ban last week, the DA anticipates further reductions in local rice prices by December.

NFA Administrator Larry Lacson noted that the new procurement price will be “calibrated” based on palay quality and market conditions. He also highlighted that it generally takes two kilos of palay to produce a kilo of rice, suggesting that retail rice prices are typically about double the palay cost.