FARMERS could increase their profit if they capture the value added in palay (unhusked rice) through contract farming, according to the National Irrigation Administration (NIA).
At the Bagong Pilipinas Ngayon public briefing on Tuesday, May 14, NIA administrator Eduardo Guillen said the program is not limited to providing more affordable rice to consumers, as it could also benefit farmers if they become “entrepreneurs.”
“Ito po iyong gusto ng ating Pangulo (President Ferdinand R. Marcos Jr.). Sana iyong ating mga farmers ay ma-capture naman nila iyong whole value chain ng rice production… Huwag na sila magbenta ng palay na po sa susunod, bigas na,” he said.
Guillen explained that farmers under contract farming are prioritized in the distribution of farm equipment, particularly the rice processing system of the Philippine Center for Postharvest Development and Mechanization (PhilMech).
On average, the value added from palay production to rice milling is worth P37 per kilogram (kg).
“So biruin niyo, kung kahit P20 iyong ma-capture nung mga farmers natin dito for every 1,000 hectares na ma-consolidate natin per town, that would mean around P100 million na ma-capture po ng mga farmers natin to, mga cooperative natin,” Guillen said.
Under contract farming, farmers can secure income even at a farmgate price of at least P20, considering that the cost of production only ranges from P13.90 per kg to P14.20 per kg.
The production cost is slashed through government support, which includes the distribution of seedlings, fertilizers, and mechanization.
Guillen, meanwhile, said the contract farming program would continue to be rolled out, with the new batch targeting farmers not included in the Registry System for Basic Sectors in Agriculture.
Earlier, the Department of Agriculture confirmed the President’s instructions to expand and implement the program in the upcoming wet season planting to make more affordable rice available in the market.
In August, the NIA is set to sell 100 million kg of rice at P29 per kg in Kadiwa stores in Metro Manila, Cebu, and Davao. (Philippine News Agency)
