Farmers warn of further drop in palay prices

MANILA, Philippines — Local farmers are expected to   bear the brunt of the government’s pro-import stance as the farm- gate prices of palay or unhusked rice may decline anew especially during the main harvest season, according to the Federation of Free Farmers.

The FFF warned that the entry of large volumes of private sector-led imports would result in a supply glut that may again lead to a fall in palay farmgate prices during the main harvest season in September to November.

The FFF hit the pro-import stance of the Department of Agriculture and the National Food Authority, maintaining that excessive imports may discourage farmers from planting and make the country even more dependent on foreign suppliers for its food requirements.

FFF national manager Raul Montemayor said the DA has been giving inconsistent and conflicting signals to farmers.

“On the one hand, it is encouraging farmers to expand their production and enticing them with loans, subsidies and other incentives.  On the other hand, it is leaving the room open for private importers to bring in unlimited volumes of rice from abroad,” Montemayor said.

“The DA was even the one who proposed that the government import another 300,000 metric tons. It appears that the DA just wants to flood the market with rice and is not really concerned about what happens to farmers in the process,” he said.

The FFF questioned the need to  import considering that Secretary William Dar said the country has a comfortable 84-day inventory level.

Dar recently said the Philippines would end the year with a surplus equivalent to 18 percent of the country’s total consumption for the year.

The bulk of the surplus will come from about 1.8 million MT of private sector imports for which the DA has issued import clearance, and the planned 300,000 MT importation by the government through the Philippine International Trading Corp.

Further, local farmers slammed NFA administrator Judy Dansal who urged the private sector to bring in more rice to boost the country’s inventory amid the pandemic.

The FFF urged the NFA to focus on its local procurement operations and assist and encourage the private sector to buy farmers’ produce instead of urging them to just import.