Manila: President Ferdinand R. Marcos Jr. has issued Executive Order (EO) 100, establishing a floor price for palay (unhusked rice) to protect farmers from falling farmgate prices. The order activates mechanisms to implement this floor price to safeguard farmers’ interests.
According to Philippines News Agency, the EO mandates the Department of Agriculture (DA) to determine and adjust the palay floor price for government procurement, considering production costs, market prices, and fair margins for farmers. The DA is also tasked with considering factors such as emergencies, import influx, global price declines, and the government’s purchasing capacity.
The EO specifies that the DA should ensure fair regional returns for farmers by recognizing differences in production costs and market conditions. It also calls for the creation of a steering committee led by the DA and co-chaired by the Department of the Interior and Local Government. This committee includes members from various departments and agencies to assist in setting and enforcing the price.
Government agencies and local government units are authorized to use public facilities for temporary palay storage when warehouses are unavailable. Coordination with local government units is required to maintain public services. The steering committee is also tasked with crafting guidelines on storage use and regularly monitoring farmgate transactions. They must submit quarterly reports on the policy’s impact on farmer incomes and rice supply stability.
Purchasing palay below the set floor price will be subject to administrative action. Initial funding for the EO will come from existing appropriations and other identified funds, with future budget requirements included in agency proposals.
President Marcos emphasized the need for a fair palay floor price to protect farmers from volatile market prices, particularly during harvest seasons when prices drop due to oversupply or weather impacts. He noted that the decline in farmgate prices affects farmers’ livelihoods and agricultural sustainability.
The EO aims to provide a fair return to farmers by covering production costs and ensuring rice supply affordability and stability. Farmer organizations have advocated for a PHP 5-per-kg. support price and changes to rice import tariffs, as farmgate prices remain low.
EO 100 will take effect immediately upon publication in the Official Gazette or a newspaper of general circulation.
