DA Investigates Unscrupulous Traders of Local Rice Farmers

Strategic Insights -

The Department of Agriculture (DA) is conducting an investigation into allegations of traders taking advantage of local rice farmers by buying palay (unhusked rice) at significantly lower prices than the National Food Authority's (NFA) set price range. According to DA Secretary Francisco Tiu Laurel Jr., the investigation aims to identify the traders who procured palay at prices as low as PHP13 per kilogram. Tiu Laurel also mentioned the DA's plan to set a floor price to protect farmers from unscrupulous traders, citing similar policies in countries like India.

Key Takeaways:

  • The DA is investigating allegations of unscrupulous traders taking advantage of local rice farmers by buying palay at low prices, including PHP13 per kilogram in select areas in Luzon.
  • The National Food Authority's (NFA) price range for clean and dry palay is set at PHP18 to PHP24 per kilogram.
  • DA Secretary Francisco Tiu Laurel Jr. mentioned the DA's plan to set a floor price to help protect farmers from unscrupulous traders, citing similar policies in countries like India.
  • The investigation aims to identify 32 locations nationwide where the buying price range is below PHP13.50 per kilogram, including Bataan, Cagayan, Allacapan, Kalinga, Nueva Vizcaya, Ifugao, and Quirino.
  • The NFA is mandated to secure the country's 15-day national rice buffer stock for times of calamities and disasters through palay procurement from local farmers.
  • The DA will prioritize areas with low traders' buying prices in the NFA's palay procurement for the next harvest season.

Statistics:

  • The lowest reported traders' buying price as of April 30 was logged in Bataan, at PHP13.50 per kg
  • Other areas with PHP14 per kg price include Cagayan, Allacapan, Kalinga, Nueva Vizcaya, Ifugao, and Quirino in Cagayan Valley; Compostela Valley in Southern Mindanao; and Sultan Kudarat in Central Mindanao
  • The NFA's price range for clean and dry palay is set at PHP18 to PHP24 per kilogram
  • 32 locations nationwide were identified to have a low buying price range for palay

Sources:

  • Philippine News Agency (2025-05-19)
  • Department of Agriculture (DA)
  • National Food Authority (NFA)