President Ferdinand Marcos Jr. signed Executive Order 100 setting a floor price or minimum price for palay, to help farmers earn a fair profit from their harvest.
According to the EO, there are “trigger mechanisms” for when the floor price will be implemented against low market prices that are detrimental to farmers. The aim is to ensure fair income despite production costs.
Marcos Jr. stated that low prices, sometimes even lower than the cost of production, are caused by oversupply, weather effects, or unfair trading practices that affect farmers' livelihoods.
The Department of Agriculture is tasked with determining and adjusting the floor price based on production costs, market conditions, and farmer welfare, while maintaining a price for the consumer. A Steering Committee from the DA, Trade, Interior, Agrarian Reform, and Social Welfare departments will assist in its implementation.
Traders who purchase palay at a lower price than the set price may be subject to administrative action. The government or LGUs may also store palay if there is no more space in the warehouse.
