The Department of Agriculture (DA) has warned traders buying wet palay or unhusked rice at P5 per kilo from farmers in Nueva Ecija.
The agency said that they could face profiteering charges.
Last week, farmers in Cabiao town in Nueva Ecija province asked for help from the government after their palay paddies were submerged.
Palay prices dropped to P5 per kilo, which is below the trading rate prescribed by the government.
The DA, through the National Food Authority and the Regional Field Office in Central Luzon, launched an investigation into the matter, after the Samahang Industriya ng Agrikultura reported the situation.
"That’s too much, it’s really an abuse of traders who are buying,” said DA spokesperson Assistant Secretary Arnel de Mesa.
The official said the traders involved could face profiteering charges.
"If that’s true, we will pinpoint who the traders are buying at that price and report it because that’s really an abuse. Investigations on other earlier reports of low traders’ prices are still ongoing," de Mesa added.