Probe sought as Nueva Ecija farmers’ deaths linked to low palay prices

MANILA, Philippines — The Department of Agriculture (DA) has denied claims that at least three Nueva Ecija farmers took their own lives due to low palay prices but has asked the National Bureau of Investigation (NBI) to look into the matter.

Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement on Tuesday, March 25, that the agency's fact-finding report, along with accounts from law enforcement, contradicts the claims. 

He also noted that the DA has also received statements from the families of the deceased.

Magsasaka Party-list Chairperson Argel Joseph Cabatbat first made the claim in a radio interview.

The National Food Authority (NFA) reported that it has been purchasing palay at P18 per kilogram for fresh harvests and P24 per kilogram for clean, dry grains.

However, Tiu Laurel said the NFA is struggling to purchase more sacks of palay from farmers due to its limited budget, adding that its “regulatory powers have been stripped.” 

Farmer groups attributed this to the Rice Tariffication Law. The DA said the loss of these powers has “hindered its ability to manage rice inventories effectively through regular sales to the public.”

“With its limited authority, the NFA cannot intervene in the market effectively, leaving traders room to suppress palay prices. This has led to the current farmgate prices dropping to as low as P14 per kilo,” Tiu Laurel said. 

For the NFA to “influence market prices,” he mentioned that the agency would need additional resources to buy a larger volume of palay.

Lower farmgate prices 

According to the Philippine Statistics Authority (PSA), the national average farmgate price of fancy, dry palay stood at P21.79 per kilogram as of February, while other varieties of dry palay were priced at P20.29 per kilogram. 

These prices were lower than in January, when prices were at P23.17 and P20.68 per kilogram, respectively. This means earnings for farmers are relatively lower.

The region with the lowest farmgate price can be found in Calabarzon, where palay is bought at P17.34 per kilogram. 

NFA Administrator Larry Lacson said the agency has instructed farmers in Ilocos, Cagayan Valley and Central Luzon to sell their palay to the NFA, which will buy it at P19 per kilogram.

In early March, some lawmakers urged the DA to strictly monitor farmgate prices and ensure fairness, alongside its efforts to lower retail rice prices.

RELATED: DA, NFA pressed to keep palay farmgate prices fair, reduce imports

Caused by a 'global market correction'

Tiu Laurel said the decline in local palay prices is part of a “global market correction.” He explained that global rice prices surged over the past two years as demand rose due to anticipated shortages caused by El Niño and supply tightened following India’s ban on non-basmati rice exports in August 2023.

The current drop in palay prices, he said, reflects a correction in supply and demand dynamics, especially as India’s ban had been lifted in September 2024.

For Tiu Laurel, the DA is doing its part with the resources available to protect farmers' livelihoods and ensure consumer welfare. However, he urged lawmakers to pass measures that would “empower the DA” to address these issues more effectively.

“We are doing this with one hand tied behind our back. We need some of the NFA’s powers back — if not to the agency itself, then to the DA — to better address the challenges we face,” said Secretary Laurel. 

Latest rice prices. As of March 25, the DA recorded the following commercial rice prices per kilogram in Metro Manila markets:

• Imported
  • Special: P50 to P60
  • Premium: P48 to P51
  • Well-milled: P43 to P46
  • Regular milled: P35 to P45
• Local
  • Special: P53 to P64
  • Premium: P43 to P62
  • Well-milled: P40 to P54
  • Regular milled: P48 to P40

The DA attributed the decline in well-milled rice prices in recent months to the staggered implementation of the maximum suggested retail price on imported rice since January 20.