President Ferdinand Marcos Jr. on Thursday ordered the establishment of a floor price for the buying of palay to prevent unscrupulous traders from taking advantage of farmers during harvest season.

During a meeting at Malacanang Palace to address challenges in the agricultural sector, Marcos directed the Department of Agriculture (DA) to coordinate with the Office of the Executive Secretary (OES) and the Office of Senator Francis Pangilinan to draft an executive order establishing the palay buying floor price.

The President also ordered the full implementation of Republic Act No. 11321, also known as the Sagip Saka Act of 2019, to support farmers and the Benteng Bigas program, which makes rice available at P20 per kilo.

The DA was also instructed to draft the executive order for the full implementation of the Sagip Saka Act of 2019, which allows government agencies and local government units to buy agricultural products directly from accredited farmers and fisherfolk.

The Chief Executive also ordered a review of the charter of the National Food Authority (NFA) and proposed necessary amendments to RA No. 12078 or the amended Agricultural Tariffication Law of 2024 to strengthen the provision on farmer support services. RA 12078 extended the implementation of the Rice Competitiveness Enhancement Fund (RCEF) until 2031.

The President also said that the NFA should return to its original mandate of stabilizing prices and not rely on importation, which was never part of its core function.

Marcos affirmed the strong support from LGUs for the P20 per kilo rice program and efforts to bring down rice prices. However, the President said that while the retail prices of rice are declining, farmers continue to suffer as traders purchase palay at a very low cost.

Pangilinan recommended setting a floor price for buying palay and engaging local government units (LGUs) in palay procurement through the Sagip Saka Act, noting that the farmgate prices of palay remain low during the peak harvest season, leaving farmers vulnerable to traders who buy their produce at lower rates.

The President also directed the DA and the Department of Agrarian Reform to work with Congress on the creation of the Congressional Commission on Agriculture, Fisheries, and Food Security (AGRICOM), as proposed by Pangilinan.

Modeled after the Congressional Commission on Education, the proposed AGRICOM aims to provide an institutional mechanism for assessing the state of agriculture and fisheries and recommending necessary reforms.

Marcos convened a meeting with key legislators, including Pangilinan, who chairs the Senate Committee on Agriculture, Food, and Agrarian Reform, to find solutions to the challenges faced by the agricultural sector.

Also present at the meeting were Quezon City 1st District Rep. Mark Enverga, chairperson of the House of Representatives committee on agriculture and food; Apayao Lone District Rep. Eleanor Bulut-Begtang, chairperson of House committee on agrarian reform, Executive Secretary Lucas P. Bersamin, Department of Agriculture (DA) Secretary Francisco Tiu Laurel, and Department of Agrarian Reform (DAR) Secretary Conrado Estrella III.

The President also highlighted the need to strengthen the capacity of the Cooperative Development Authority (CDA) and extension services of the DA to help farmers consolidate into cooperatives and clusters in order to scale production or mechanize.

Marcos emphasized that the ultimate solution is to reduce production costs and increase output, enabling local rice to compete with imports. Presidential News Desk