By Ruth Abbey Gita-Carlos

MANILA – President Ferdinand R. Marcos Jr. on Saturday issued Executive Order (EO) 100 establishing a floor price for palay (unhusked rice) and activating trigger mechanisms for its implementation to protect farmers from declining farmgate prices.

Under the EO, the Department of Agriculture (DA) is mandated to determine, set, and adjust the palay floor price for government procurement based on the cost of production, prevailing market prices, reasonable margins for farmers, and the welfare of both producers and consumers.

The DA may also consider other factors, including “emergencies or calamities affecting the rice supply chain and palay production; influx of import arrivals that could dampen farmgate price of palay; sharp decline in global prices that may impact the estimated landed cost of rice; and government’s capacity to purchase palay at competitive prices and manage market intervention.”

“In establishing the floor price of palay, the DA shall ensure a fair return of investment to farmers on a regional level by recognizing regional variance in production costs, market conditions, and profit margin, to be reviewed and adjusted before the onset of cropping season or whenever necessary,” the EO read.

EO 100 also paves the way for the creation of a steering committee, to be chaired by the DA and co-chaired by the Department of the Interior and Local Government.

Other members of the steering committee are the Department of Trade and Industry, the Department of Agrarian Reform, the Department of Social Welfare and Development, and the National Food Authority (NFA) to assist in setting and enforcing the floor price.

To support post-harvest operations, government agencies and local government units (LGUs) are authorized to utilize public facilities, such as covered courts, multipurpose halls, gymnasiums, and other state-owned structures as temporary palay storage when warehouses are unavailable.

This must be coordinated with LGUs to ensure continuity of public services.

The steering committee is directed to craft guidelines on proper storage use, maintenance, and security to prevent post-harvest losses and preserve grain quality. It must also regularly monitor farmgate transactions and submit quarterly implementation and impact reports to the President, particularly on farmer incomes and rice supply stability.

It is also instructed to conduct regular monitoring of farmgate transactions and submit quarterly reports to the President on the policy’s implementation and impact on farmer incomes and rice supply stability.

Violations, such as purchasing palay at a price below the set floor price, will be subject to administrative action.

Initial funding for the EO’s rollout will be sourced from existing appropriations of the committee’s member agencies and other funds identified by the Department of Budget and Management.

Budget requirements for continued implementation will be included in future agency proposals, subject to standard budget preparation procedures.

Marcos signed EO 100, acknowledging that the absence of a just and equitable floor price for palay exposes farmers’ vulnerability to volatile market prices, particularly during the peak of harvest seasons when farmgate prices often drop due to oversupply, weather-related impacts, or unfair trading practices.

He said the drop in farmgate prices of palay undermines farmers’ livelihoods, farm productivity, and long-term agricultural sustainability.

“In view of the rising production costs coupled with climate-induced production risk and the widening profit margin gap between farmgate price and retail prices, the government recognizes the urgent need to guarantee a fair and just return to farmers by setting a floor price that covers production costs and provides reasonable income while ensuring the affordability and stability of rice supply for consumers,” EO 100 said.

Farmer organizations have repeatedly sounded the alarm over plunging palay prices, urging the government to adopt a PHP 5-per-kg. support price and revert tariffs on imported rice.

They noted that the import ban has so far failed to lift farmgate prices, which remain between PHP10 and PHP12 per kg. in most areas and have fallen to as low as PHP8 in other places.

EO 100 takes effect immediately after its publication in the Official Gazette or in a newspaper of general circulation. (PNA)

Published Date: October 25, 2025