Senator Francis “Kiko” Pangilinan bared plans to incorporate the Sagip Saka Act into the amendments to the Rice Tariffication Law (RTL) to help set the floor price for palay (unhusked rice), protecting farmers from production losses and guaranteeing a minimum income to rice farmers.
The chair of the Senate Committee on Agriculture, Food, and Agrarian Reform said that the price assurance encourages farmers to maintain or increase their cropping and planting intentions, which is crucial for sustaining rice production levels.
“Ang isa rin aspeto na pwede natin ilagay sa batas would be ‘pag gobyerno ang bumibili because nga gusto natin—the Sagip Saka Act already mandates the direct purchase by government sa agriculture products ng farmers na wala nang public bidding,” he explained during the second public hearing of the Committee on Agriculture joint with the Committees on Finance and Ways and Means on Wednesday, August 27.
“So, siguro doon, we can impose a floor price. Pag gobyerno ang bumibili direkta sa ating mga magsasaka at mangingisda ng palay and other agriculture products may floor price na cost-plus,” he added.
The senator stated that the floor price can be determined by the National Food Authority (NFA).
Pangilinan once more underscored the importance of fully implementing the Sagip Saka Act, a law he authored and passed in 2019 to allow national government agencies and local government units to buy agricultural products directly from farmers and fisherfolk without public bidding.
This came after Department of Agriculture (DA) Secretary Francisco Tiu-Laurel Jr. informed the senator that the Indian government fully controls its farmers and traders by buying directly from them and subsidizing their production costs.
A floor price in rice is important primarily to ensure that farmers receive a price that covers production costs and provides a reasonable profit.
Without a floor price, farmers are prone to selling their rice products at very low prices determined by volatile market conditions or traders, potentially leading to reduced production in the future since farmers may be discouraged by inadequate returns.
It also protects farmers against market fluctuations and manipulations—such as hoarding or collusion among traders—that could depress prices below a sustainable level.