By Chynna Grace Ong

HIGHER palay prices in August should help rice farmers cope with rising fuel, transport and farm input costs, the Department of Agriculture (DA) said Saturday.

The average farmgate price of dry palay climbed by 29.9 percent to P22.16 per kilogram in August from P17.06 a year earlier, according to the Philippine Statistics Authority.

However, it was 1 percent lower than the P22.39 recorded in July.

“Higher palay prices give our rice farmers some room to absorb the increase in fuel, transport and input costs,” Tiu Laurel said. “We are cautiously optimistic that this will support their planting intentions despite the risk posed by El Niño in the months ahead.”

Not all farmers benefited, however, particularly those in areas hit by the intensified southwest monsoon.

Tiu Laurel said excessive moisture reduced the quality of harvested palay and kept farmgate prices low in affected areas.

Among the regions, Ilocos posted the largest annual increase of 54 percent, bringing its average palay price to P23.57/kg.

Prices spiked by 50 percent to P19.02 in Calabarzon, 41 percent to P20.62 in Cagayan Valley, and 32 percent to P20.86 in Central Luzon.

Central Visayas recorded the highest average price at P28.07/kg, up 41 percent from a year earlier.

The DA said it had prepared measures to protect rice production from El Niño and help farmers recover from recent weather disturbances.

The Philippine Crop Insurance Corp. recently paid P104.1 million in claims to 10,596 farmers and fisherfolk affected by the southwest monsoon and tropical cyclones Luis, Maymay, Neneng and Pilandok from Aug. 1 to Sept. 13.

The payments covered beneficiaries in eight regions. Mimaropa received the largest amount at P41.10 million for 2,721 claimants, followed by Central Luzon with P21.02 million for 1,435 beneficiaries.

Rice farmers received the largest share by commodity, with P53.76 million paid to 4,972 beneficiaries. Corn farmers got P23.93 million, while livestock raisers obtained P15.74 million.

The DA said the interventions were intended to protect farm output and keep rice supplies and prices stable if dry conditions intensify. 

Published Date: September 21, 2026