Jasper Emmanuel Arcalas – The Philippine Star 

MANILA, Philippines — The government should prioritize the implementation of the floor price mechanism for both palay and corn in the last three years of the Marcos administration, the Philippine Chamber of Agriculture and Food Inc. (PCAFI) said.

PCAFI said the imposition of the floor price mechanism would “guarantee” farmers’ income amid volatile markets.

The Department of Agriculture (DA) earlier disclosed that the implementation of a floor price mechanism on palay was in the works.

House Speaker Martin Romualdez has filed a bill that included a provision that empowers the National Food Authority (NFA) to enforce a floor price on palay.

A floor price refers to the minimum allowed buying price for a commodity. The bill outlined possible penalties for violators of the proposed floor price system.

At present, only tobacco has a nationwide floor price as mandated by existing laws and regulations.

“The floor price mechanism must be enforced in partnership with the private sector to ensure proper implementation,” PCAFI president Danilo Fausto said.

Aside from the floor price, PCAFI proposed other programs that may help accelerate the development of the agriculture sector in the remaining years of the Marcos administration.

PCAFI reiterated its call for the establishment of a reliable and real-time data information system as mandated under Republic Act 8435 or the Agriculture and Fisheries Modernization Act.

The data system will empower rice farmers when it comes to trading their produce while strengthening the government’s policy-making capabilities, according to PCAFI.

The government must rationalize its import programs for various commodities and ensure that only the shortfall in domestic supplies are being allowed to enter the country, PCAFI said. This, the group pointed, will protect farmers’ prices while keeping retail prices stable.

The industry group also proposed the scaling up of the production of other corn alternatives such as cassava and sweet potato to ease shortage in raw materials needed for livestock and poultry feeds.

“The government may also consider reviving the project that sought to commercialize rice-corn blend mix to reduce rice consumption in the country and promote a healthier staple alternative,” PCAFI said.

PCAFI said the rice-corn blend project may reduce rice consumption by 30 to 50 percent even on once-a-week consumption, thus lowering the need for rice imports.

PCAFI added that the 70:30 rice-corn mix is the ideal blend but an equal portion of rice and corn (50:50) could still be tolerable for Filipino consumers.

Published Date: July 28, 2025