News Details

PBBM Issues EO 100 to Secure Fair Palay Prices and Shield Farmers from Market Decline

NPO

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October 25, 2025

MANILA – In a decisive move to protect Filipino rice farmers from falling farmgate prices, President Ferdinand R. Marcos Jr. has signed Executive Order (EO) No. 100, establishing a national floor price for palay (unhusked rice) and introducing trigger mechanisms for its timely implementation.

Under the new directive, the Department of Agriculture (DA) is tasked with setting and adjusting the palay floor price based on key indicators — including the cost of production, prevailing market rates, reasonable farmer margins, and the overall welfare of producers and consumers.

The EO empowers the DA to consider external and domestic factors such as natural calamities, surges in rice imports, and global price fluctuations that could negatively affect farm incomes. It also mandates the department to review and adjust the floor price before every cropping season or when necessary, taking into account regional variations in production costs and market conditions.

To oversee the program, a steering committee will be established — chaired by the DA and co-chaired by the Department of the Interior and Local Government (DILG). Members include the Department of Trade and Industry (DTI), Department of Agrarian Reform (DAR), Department of Social Welfare and Development (DSWD), and the National Food Authority (NFA). The committee will be responsible for setting, enforcing, and monitoring the floor price policy.

Support for Post-Harvest and Storage Operations

Government agencies and local government units (LGUs) are authorized to temporarily use public facilities such as covered courts, gymnasiums, and multipurpose halls as palay storage areas when warehouses are unavailable. The steering committee will formulate guidelines on maintenance, security, and storage management to prevent post-harvest losses and preserve grain quality.

The committee is also mandated to conduct regular monitoring of farmgate transactions and submit quarterly reports to the President detailing the EO’s impact on farmer incomes, rice price stability, and market conditions. Any violation — including buying palay below the set floor price — will warrant administrative sanctions.

Funding and Implementation

The EO’s initial implementation will draw funds from existing appropriations of member agencies, with future budgetary needs to be proposed through regular national budget cycles and coordinated with the Department of Budget and Management (DBM).

Protecting Farmers Amid Price Volatility

President Marcos emphasized that the absence of a fair floor price leaves farmers vulnerable during peak harvest periods, when oversupply, unfair trading, and high production costs often depress palay prices.

He said the government must ensure “a fair and just return to farmers by setting a floor price that covers production costs, provides reasonable income, and maintains the affordability and stability of rice supply for Filipino consumers.”

Farmer groups have welcomed the measure, reiterating their call for stronger price safeguards as palay farmgate prices in some regions have dropped to ₱8 per kilogram, far below sustainable levels.

EO 100 takes effect immediately upon its publication in the Official Gazette or a newspaper of general circulation.

NPO News Team | PNA-PR