DA Eyes Setting Minimum Buying Price for Rice Traders to Protect Local Farmers

The Department of Agriculture (DA) is considering setting a “minimum buying price” or floor price for paddy rice to ensure local farmers are paid fairly for their harvest, particularly as some traders continue to offer unreasonably low rates.

Speaking at a forum in Quezon City, DA Assistant Secretary for Marketing and Consumers Affairs Genevieve Guevarra revealed that some middlemen are purchasing palay (unmilled rice) for as low as ₱11 to ₱12 per kilo—prices that hurt small-scale farmers.

“We’re planning to implement a floor price not just for the National Food Authority (NFA), but for all rice traders who buy directly from our local farmers,” Guevarra stated.

The floor price is expected to be in place by the end of 2025, as part of a broader strategy to stabilize the rice market and prevent farmer exploitation.

Agriculture Secretary Francisco Tiu Laurel Jr. previously said that traders in at least 32 areas in Luzon are under investigation for undercutting farmers with extremely low palay prices. While no legal action has been taken yet, the DA is pushing policy changes to address the issue.