Pangasinan Government Acts on Palay Price Drop
LINGAYEN, PANGASINAN — The provincial government of Pangasinan is set to start buying newly harvested palay, or unmilled rice, from local farmers after farm gate prices plunged to between P8 and P10 per kilo. This price range is significantly below the production cost, which stands at around P15.50 per kilo.
Governor Ramon Guico III announced the procurement initiative during his inaugural speech, emphasizing that the move aims to support farmers, especially those involved in the corporate farming program. The program currently includes nearly 1,500 members from 54 cooperatives across the province.
“Through the corporate farming program, farmers’ yields have increased, but unfortunately, prices have declined—reportedly due to excessive rice importation,” the governor explained. He added that the provincial government will allocate funds to purchase palay, which is needed for supplying rice to hospitals, the provincial jail, and calamity relief efforts.
Challenges in Rice Processing and Market Prices
Despite these efforts, the governor highlighted the need to invest in updated rice processing machinery and infrastructure. He noted that equipment previously donated by government agencies has become outdated, hindering efficient processing.
Local farmers’ groups, including the Samahan ng Industriya ng Agrikultura (Sinag), confirmed that farm gate prices in Pangasinan, as well as in nearby Bulacan and Pampanga, have fallen sharply to P8–P10 per kilo. They attribute this decline partly to the decreased price of imported Vietnamese rice and a low import tariff of 15 percent.
Calls for Higher Rice Import Tariff
Sinag leaders have urged the Department of Economy, Planning, and Development (DEPDev) to restore the rice import tariff to 35 percent to protect local producers. However, these appeals have yet to yield results.
“But nothing has come of the request so far,” a farmer leader said in a phone interview.
The National Food Authority (NFA) currently buys palay at P24 per kilo, but its limited P5-billion budget only covers about two percent of the national harvest, roughly 208,000 metric tons. This constraint forces many farmers to sell their palay to private traders at much lower prices.
With the country’s palay harvest from July to December expected to reach 10 million metric tons, there is concern that prices could fall even further to P6–P7 per kilo if government support remains insufficient.
Corporate Farming Expansion and Infrastructure Development
Governor Guico shared that the corporate farming program is expanding to include more farmers throughout Pangasinan. The initiative provides free seedlings and farm machinery, aiming to consolidate farmland and resources under a corporate farming model. It also promotes site-specific production techniques and pest management to boost yields.
Additionally, four provincial warehouses equipped with multipurpose drying pavements have been established in Sta. Barbara, Bugallon, and San Quintin. These facilities are expected to improve post-harvest handling and storage.
For more news and updates on palay price drop, visit Filipinokami.com.