THE farmgate prices of palay (unmilled rice) reportedly reached its lowest at P10 per kilo in Occidental Mindoro, groups said on Thursday, who also urged the government to push immediate efforts, particularly buying local palay produce at P20 per kilo to aid farmers.

"This harvest season, rice farmers suffered another blow of depressed farm gate prices when they sold palay, falling to as low as P10 per kilo in Occidental Mindoro. Moreover, they were from P12 to P14.50 per kilo in Nueva Ecija, Isabela, Camarines Sur, Ilocos Norte, as reported by our chapters,” Cathy Estavillo, Secretary-General of Amihan and Anakpawis party-list, said in a statement.

She cited reports the P14 per kilo farmgate price of palay on Wednesday in Occidental Mindoro even dropped to P13.50 per kilo on Thursday morning.

Estavillo blamed another episode of plummeting palay prices on the Rice Liberalization Law enacted in February 2019, which removed restraints on the importation, exportation and trading of rice.

Restraints on imports were replaced by tariffs, which will be used to fuel the P10-billion Rice Competitiveness Enhancement Fund annually that aims to improve the competitiveness and income of rice farmers amid rice trade liberalization.

The groups, with Bantay Bigas rice watch group, added depressed farm gate prices that were dictated by monopoly private traders who were reaping giant profits from the liberalized rice market, or without government regulation.

They pointed out the traders’ dominant position to dictate prices was bolstered by the enactment of Republic Act 11203 or the “Rice Liberalization Law,” as it decoupled the National Food Authority (NFA) from purchasing palay whose buying price is supposed to be a regulatory mechanism.

The law, the groups noted, also caused P165 billion worth of losses to rice farmers from 2019 to 2020, all brought about by depressed farm gate prices alone.

Data from the Philippine Statistics Authority showed farmgate palay prices dropped by 2.8 percent at P16.94 per kilo in the first half of the year. This compares to P17.42 per kilo recorded in January to June 2020.

The groups also cited that during the same period last year, farmgate prices in Cagayan and Sorsogon were P10 and P11 per kilo, respectively.

"We have documented cases of rice farmers in Cagayan who endured more than P11,300 losses per hectare last October 2020 due to low farmgate price at P10 per kilo which remains the current price today. In Nueva Ecija, farmers were forced to sell or pawn their land due to bankruptcy," Estavillo added.

For his part, Ariel "Ka Ayik" Casilao, Anakpawis party-list national president and former representative, warned continued bankruptcy of rice farmers is dangerous to the country, as it would eventually lead to their displacement from farms and falling productivity.

He urged various sectors to intervene against the catastrophic trend of depressed farm gate prices of palay.

The former lawmaker called out to both branches of the legislature to enact House Bill 477 Rice Industry Development Act (RIDA), filed by the Makabayan bloc lawmakers, for the attainment of self-sufficiency and food security in the country. It is proposing the three-year P185 billion allocation for rice development plan and annual P103 billion for palay procurement of the NFA.

RIDA was originally filed by Casilao during the 17th Congress, and was a result of numerous consultations to various rice farmer groups and stakeholders.

"The issue of falling farm gate prices of palay is beyond the rice farmer sector. At the same time, the price of rice per kilo has increased to P2 from P41 to P43 per kilo. It is a primary concern of the whole population. If we allow our food frontliners to go bankrupt and be displaced from production, it is certain we are all heading towards hunger and import food dependence,” the groups said.

“We urge everyone to act against further liberalizing the rice sector, and instead, push for a nationalist and democratic program to protect the Philippine rice industry," they ended.