NFA to increase buying price of palay to local farmers

The National Food Authority (NFA) said on Thursday that it will be increasing its buying price of palay to local farmers amid the slack in their procurement due to traders outbidding them with higher purchase prices.

NFA officer in charge administrator Larry Lacson said the clean and dry will have a buying price range of P23 to P30 per kilogram from the previous P19 to P23 per kilogram, while the fresh and wet will be priced at P17 to P23 per kilogram from P16 to P19 per kilogram.

"But this will not be implemented right away since the guidelines are still being put in order as we speak," Lacson told DAILY TRIBUNE.

The NFA acting chief said there are still processes the new guidelines must undergo before taking effect.

"We really have the documents signed," Lacson said.

When asked how long the process would take, he said, "We're pushing that by next week this will be implemented."

Earlier this week, NFA disclosed a struggling palay acquisition as they were challenged by traders who bid higher buying prices of P27.

Lacson, however, said that from what he sees, the agency has sufficient rice inventory despite their thin procurement.

"I think it's enough because a lot has been harvested, a lot is in households, and a lot is in private traders. The supply [of rice] in the Philippines is sufficient," he said.

Lacson said that NFA warehouses currently have approximately 42,000 metric tons of rice buffer sock.

'Not that optimistic'

NFA's accomplishment report for February showed that the agency was able to procure 12,378 bags of palay equivalent to 618.9 metric tons (MT).

The acquired bags are only 2.28 percent of the procurement target of 542,800 bags, equivalent to 27,140 MT.

Lacson said he is not that optimistic about reaching its target of procuring its earlier target of securing over 500,000 bags of palay.

"I'm not that optimistic about reaching that because the harvest [season] is almost over. I think we are at the tail end," said Lacson.

"We will just buy as much as we can; after all, we have been given a price range; then let's see how much we can still buy," he added.