MANILA – Rice farmers earned more in 2024 despite rising production costs, while the country also achieved a stronger rice buffer stock, according to the Department of Agriculture (DA).
Data from the Philippine Statistics Authority (PSA) shows that the average farmgate price per kilogram of palay (unhusked rice) increased to PHP23.48 in 2024, up from PHP19.88 in 2023.
This led to a higher gross return of PHP95,906 per hectare and a net return of PHP36,211 per hectare, compared to PHP82,914 and PHP26,423, respectively, in 2023.
The net profit-cost ratio reached PHP0.61 for every kilogram of palay sold, higher than PHP0.47 in 2023 and PHP0.20 in 2022.
The National Food Authority’s (NFA) Price Range Scheme (PRICERS) helped influence traders’ pricing last year.
“Despite lower production due to El Niño, La Niña, and successive typhoons, farmers still benefited from favorable pricing,” a DA spokesperson stated.
The NFA Council increased the buying price for dry and clean palay to between PHP23 and PHP30 per kilogram, while fresh and wet palay prices ranged from PHP17 to PHP23.
Previously, NFA’s buying price was set at PHP16 to PHP19 per kilogram for wet palay and PHP19 to PHP23 for dry palay.
Farmers’ income outpaced rising production costs, which were mainly driven by higher labor expenses.
The PSA reported that the average production cost for palay rose to PHP14.52 per kilogram in 2024, up from PHP13.54 in 2023.
Filipino farmers traditionally pay harvesters in kind, allocating 9 to 10 percent of their total harvest as payment.
Since farmgate prices increased in 2024, the value of this in-kind payment also rose, contributing to higher labor costs.
The DA acknowledged the need to review this cultural practice while continuing to support mechanization to reduce production costs.
Strong National Rice Buffer Stock
The government successfully increased the national rice buffer stock through aggressive procurement efforts.
As of July 5, the buffer stock stood at 450,660 metric tons (MT), equivalent to a 12-day supply—a significant improvement from the one to two days before the current administration.
The target under the amended Rice Tariffication Law (RTL) is a 15-day reserve for emergencies.
Higher farmgate prices encouraged more farmers to sell to the government at profitable rates.
Since April 2024, over 94,000 farmers have benefited from the PRICERS program.
Eighteen out of 134 NFA warehouses undergoing refurbishment have been rehabilitated to increase storage capacity and better serve local farmers.
Upgrades were made in warehouses across Pangasinan, Ifugao, La Union, Nueva Ecija, Isabela, Zambales, Bataan, Masbate, Catanduanes, Albay, Eastern Samar, Zamboanga del Sur, and Zamboanga del Norte.
Supporting the RICE Act
The DA supports the proposed Rice Industry and Consumer Empowerment (RICE) Act, which aims to restore the NFA’s regulatory powers.
Currently, the NFA can only release rice stocks for disaster response, the PHP20-per-kilogram rice program, and auctions during food security emergencies.
If enacted, the RICE Act would allow the NFA to intervene in the market to stabilize retail prices and protect consumers.
The law could also establish a floor price to prevent traders from exploiting farmers with low buying prices during harvest seasons.
