Hike farm-gate price of palay, farmers press

A group of Central Luzon farmers asked the government yesterday to jack up the current farm-gate price per kilo of palay from P7.50 to P15 and increase to 90 percent its purchase of local rice.

This, as they assailed the plan of the National Food Authority (NFA) to import 800,000 metric tons more of rice in the first quarter of 2003 due to the expected occurrence of the El Niño phenomenon.

The Alyansa ng Magbubukid ng Gitnang Luzon (AMGL) said increasing the existing price per kilo of palay by 100 percent is "reasonable" in order for farmers to cope with the "economic sufferings we are experiencing today."

The farmers noted that despite the continuous increments in the prices of fuel and other basic commodities, the farm-gate price per kilo of palay has remained the same in the past five years.

"The Arroyo administration’s policy of rice trade liberalization is the main culprit in the farmers’ woes," said Rod Flores, AMGL chairman.

With the proposed hike in the price of palay, Flores said the NFA must also increase its current 10 percent mandated procurement of local rice to 90 percent of the marketable demand in order that the proposed P15 price will prevail and followed by private traders.

In a statement, the AMGL said the earnings of palay farmers continue to drop as cost of production shoots up. It said palay prices tend to fall, especially during harvest season.

Quoting government figures, the AMGL said a family of six needs at least P530 a day to meet the subsistence level.

However, the AMGL said a farmer tilling a one-hectare land spends P26,104.15 for production but earns an income of only P7,645.85 or P63.71 a day.

But from the derived income, a farmer still has to settle his obligations, bringing down his net income to P3,145.85 in one cropping or P26.21 a day.

These estimates, the AMGL said, is based on the assumption that the farmer has a good harvest, which means no flooding and pest infestation. — Katherine Adraneda