The National Food Authority said rice farmers earned P32 billion from high farm-gate prices in the first quarter of 2017.
NFA said it bought 131,720 bags of rice from farmers nationwide in January to March at the government support price of P17 per kilogram, plus incentives of P0.70 to P1 per kilogram for a total amount of P118.5 million.
NFA said the remaining harvest for the quarter was sold by farmers to private traders at higher prices averaging P19.80 per kg.
Data from the Philippine Statistics Authority showed the cost of palay production in the country reached P12 per kg.
NFA said farmers who sold their palay to NFA at P850 to P900 per bag realized a net profit of at least P39.5 billion, while those who sold to traders at an average of P990 per bag earned an estimated P390 per bag or a total of P31.93-billion net profit.
It said despite the intensified palay buying activities and incentives of NFA, farmers took advantage of the high prices offered by private traders ranging at P18 to P22 per kilogram versus the NFA’s support price of P17 per kg plus incentives.