The Market Monitor Minding the Nation's Business
Anid farmers’ displeasure over his lackluster performance, Agriculture Secretary Francisco Tiu Laurel Jr. makes a last-ditch effort to be remembered and hopefully retained at DA during the ongoing Cabinet recalibration.
He is strongly pushing for a palay floor price to ensure that farmers aren’t always on the losing end.
In a press release Monday, DA said Laurel hopes to release the floor prices for palay come the next harvest amid reports that farmgate prices have reached the bottom of P11 per kilogram.
The floor prices would be based on farmers’ expenses on inputs (fertilizers and seeds) per hectare.
This is the first time, and apparently a move intended to show his deference to the plight of farmers, that a floor price would be set up after the dismal performance of the administration senatorial slate in the just-concluded midterm elections 2025, which obviously highlighted the people’s disgust over the poor performance of the administration in three years.
To illustrate, he said, if a farmer pays P30,000 to P35,000 per hectare on palay then this must be inputted in the floor price to ensure that earns modestly from his livelihood.
Laurel spoke to reporters last May 25 at the opening of the Bulacan branch office of the National Food Authority in Malolos, where he explained that the adoption of floor prices would be by the next harvest season in September and October.
He explained DA is seriously studying the legal avenues to implement the floor price for palay since the NFA is decapitated from interfering in the market because of the Rice Tariffication Law, which needs to be amended to arm NFA with the teeth to run after traders who undercut the farmers of their output.
The DA had stated that the RTL “severely weakened” the NFA’s ability to keep rice prices and supply stable as it was reduced to a “buffer-stocking agency” that could only buy rice for emergency use. Rose de la Cruz
“I want the NFA not just to do buffer stocking but directly sell to the market through its accredited retail outlets like before,” Laurel said adding that previously retailers and traders had to be registered with NFA before they can sell rice. That way DA had control over the market and identify which ones are underpaying farmers and overselling rice to consumers.”
Laurel said he wants the tariff on imported rice to stay at 15%. “I will not increase for now dahil nga tapos na ‘yung harvest season dito…Kung magtataas man tayo ng tariffs, siguro kung kailan may harvest season nung nagbebenta,” Laurel said.
It must be noted that Laurel and other Cabinet members outside the economic team are deemed resigned until reappointed or retained.But he said he is confident that the tariff of 15 percent would be retained by June.
Laurel said the DA is including in its proposed 2026 budget the distribution of 500 additional trucks for farmers to be administered by the local government units and cooperatives for transporting crops to warehouses.
“NFA has purchased 90 trucks this year. 14 or 16 arrived and for next year, another 130 trucks would be purchased, but we would put in our budget proposal 500 trucks,” he said. He said DA is discussing the possibility of giving or assigning the trucks to farmers or cooperatives so their produce can easily be brought to the NFA and even before harvest for moving the fertilizers and seeds.
The trucks can also address issues of overproduction and supply wastage (of carrots, onions, tomatoes and other veggies) due to logistical problems, while palay is not yet being harvested.
He assured the farmers that DA would be moving around every week to monitor low prices being offered by palay traders. The Bulacan NFA is now buying palay at P24/kg with a P5/kg incentive for those under the Malolos LGU.