Pangasinan gov’t to buy palay from farmers amid price slump

Pangasinan Gov. Ramon Guico III is seen in a screengrab during his inaugural speech on Monday, June 30, 2025. — Photo from Ramon Mon-Mon Guico III/Facebook

LINGAYEN, PANGASINAN — The provincial government will begin buying newly harvested palay (unmilled rice) from local farmers after farm gate prices dropped to P8 to P10 per kilo, far below the production cost of P15.50 per kilo.

Pangasinan Gov. Ramon Guico III said the procurement project will initially benefit members of the corporate farming program, which currently has nearly 1,500 members from 54 cooperatives.

“Through the corporate farming program, farmers’ yields have increased, but unfortunately, prices have declined—reportedly due to excessive rice importation,” Guico said during his inaugural address on Monday.

He added that the provincial government will allocate funds for the purchase of palay, “since we buy rice for our hospitals, the provincial jail, and for distribution during calamities.”

However, the governor noted the need for investment in rice processing machinery and related facilities, as the equipment previously donated by other government agencies is now outdated.

Rosendo So, president of the farmers’ group Samahan ng Industriya ng Agrikultura (Sinag), said farm gate prices of palay in Pangasinan, Bulacan and Pampanga have plummeted to P8 to P10 per kilo.

READ: Global rice prices increased in May as demand grew

Import tariff

He explained that because the price of Vietnamese rice has gone down, local traders are unwilling to buy local palay at higher prices, especially since the current rice import tariff is only 15 percent.

Sinag has been appealing to the Department of Economy, Planning, and Development (DEPDev, formerly the National Economic and Development Authority) to restore the tariff to 35 percent to protect local rice prices.

“But nothing has come of the request so far,” So told the Inquirer by phone on Tuesday.

The National Food Authority (NFA) buys palay at P24 per kilo but is constrained by a P5-billion budget, which is only enough to purchase two percent — or about 208,000 metric tons — of the national yield.

“As a result, farmers have no choice but to sell to private traders,” So added.

He said the country’s total palay harvest from July to December this year is expected to reach 10 million metric tons.

“If the national government does nothing, palay prices may fall further to P6–P7 per kilo, as farmers will be forced to sell to traders,” So warned.

Meanwhile, Guico said the corporate farming program has been expanded to include more farmers in Pangasinan, providing them with free seedlings and farm machinery.

The program aims to consolidate farms and resources under a corporate farming model and implement site-specific production technologies and pest management practices, among other improvements.

Guico also said that four provincial warehouses with multipurpose drying pavements have been established in Sta. Barbara, Bugallon and San Quintin. /das