NFA hikes palay buying price to P21

Inquirer file photo

MANILA, Philippines — The National Food Authority (NFA) is hiking its buying price for palay (unmilled rice) nationwide to P21 per kilogram from the previous P17 kg starting in September “to help address the higher cost of fertilizer and other inputs,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement on Thursday.

The Department of Agriculture (DA) chief, who concurrently chairs the NFA Council, also announced a temporary ban on rice imports in Iloilo from mid-September until the end of November to prevent imported grains from reaching the province during peak harvest.

Article continues after this advertisement

“That is what I can do to ensure that you would earn a decent return from your hard work,” Tiu Laurel said.

FEATURED STORIES

NEWSINFO

NEWSINFO

NEWSINFO

According to the NFA, the latest interventions should boost farm-gate prices of palay and ensure higher earnings for local farmers.

READ: Rice output decline reflects policy, market and climate failures

Dubbed the rice bowl of the Visayas, Iloilo contributes nearly half of Western Visayas’ rice production and more than five percent of national output.

The province produced 837,852.21 metric tons (MT) of palay in 2025, slightly higher than the previous year, according to data from the Philippine Statistics Authority (PSA).

Article continues after this advertisement

READ: NFA palay purchases slump despite improved pricing

PSA records also showed that Iloilo’s rice output declined by 34 percent to 203,934.59 MT in the first quarter of 2026.

Article continues after this advertisement

Tiu Laurel further unveiled plans to construct two more large rice processing facilities in Iloilo, which are expected to begin operations by October, while a smaller processing center in Dumangas will be turned over to a farmers’ cooperative.

Future plans

The NFA is also building 36 modern rice processing facilities to reduce postharvest losses, improve the incomes of farmers and strengthen national food security.

Half of the processing facilities are expected to be operational during the coming wet season, with the remainder going online before the dry season harvest next year.

This week, the NFA inaugurated a P355.4-million facility in the province to boost its rice inventory and reduce postharvest losses.

According to the grains agency, the Iloilo facility can process up to 4,800 50-kilo bags of palay daily. It is equipped with mechanical dryers, allowing the NFA to purchase freshly harvested wet palay at better prices.

Its expanded storage capacity allows the grains agency to absorb up to 12 percent of Iloilo’s projected harvest, enough to help stabilize market prices.

Your subscription could not be saved. Please try again.

Your subscription has been successful.

“These are part of President Ferdinand Marcos Jr.’s vision of a modernized agricultural sector, where farmers earn a decent living, consumers enjoy affordable food,” Tiu Laurel said. /cb