MANILA — The Department of Agriculture is studying the possibility of imposing a floor price for palay procurement, as prices reportedly dropped to as low as P12 per kilo in some areas.

This comes amidst alarming reports from peasant groups that in some provinces, palay prices are hitting  very low levels.

"Pinag-aaralan ng DA yung paglalagay ng floor price sa palay para matulungan ang mga magsasaka. Open ang DA diyan," agriculture spokesperson Arnel de Mesa said in a briefing.

(The DA is studying the imposition of floor price in palay to help our farmers, we are open to that.)

Citing data from PhilRice, De Mesa said the average cost to produce a kilo of palay is P13.50, but this varies per region.

"Complicated issue kasi ang farmgate," he said. (Farmgate prices of palay is very complicated.)

Some agricultural groups floated the idea that floor price of palay should be at least P20/kilo if dry and clean.

"Reasonable ang P20 per kilo kapag dry," De Mesa said. (The P20/kilo proposal is reasonable if the palay is dry.)

The National Food Authority earlier held a consultation with farmers in Cabanatuan, Nueva Ecija to check on actual ground situation as rice harvest takes place.