NFA okays P10-B modernization plan

More postharvest processing and storage facilities will be built as the National Food Authority (NFA) approved a P10-billion modernization plan to shore up its rice buffer stock.

Agriculture Secretary Francisco Tiu Laurel, Jr., who also chairs the NFA Council, said the modernization plan will address the country’s lack of postharvest facilities.

Laurel noted that the present drying capacity for rice is 5 percent, a huge fall from the 80 percent drying capacity in the mid-80s. Laurel attributed the drop in drying capacity to increasing rice production and a need for more investments in new facilities.

He said the earmarked P10-billion fund is part of the estimated P93 billion allocation for postharvest capacity to reach 90 percent.

However, NFA acting Administrator Larry Lacson explained that the agency’s drying capacity will only rise to 180,000 metric tons once projects under the modernization plan are actualized.

“What we need is at least 495,000 metric tons of drying capacity,” Lacson said. “To help implement the plan, the NFA Council approved the appointment of Mario Andrada as NFA deputy administrator.”

“The 41-year-old NFA veteran will head the agency’s bids and awards committee that will handle contracts for the modernization projects,” it added.

The modernization plan will include the construction of rice mills, warehouses, and silos to be established in major rice production areas in the country.

Meanwhile, the Department of Agriculture (DA) expressed optimism on Friday that local rice production will kick up following the NFA’s move to increase the price of the palay it buys from farmers.

According to DA spokesperson, Assistant Secretary Arnel de Mesa, the higher buying prices would encourage farmers to plant.

“Farmers will be more motivated to plant; their income will be higher, and we expect that the cultivated area will be larger,” he said in a televised interview.

“The net effect of this is that rice production in the country will increase. Second, now that there are almost three weeks left before the end of the harvest this dry season, we hope that with this news, the NFA will have more time to increase our buffer stocks,” he added.

He explained the need for rice inventory, especially with the impending possible occurrence of La Niña in the coming months.

“That is also the time when we have many typhoons, so we need to prepare the NFA to help our disaster agencies such as the DSWD (Department of Social Welfare and Development) and OCD (Office of the Civil Defense),” De Mesa added.

On Thursday, the NFA said the agency would be increasing its buying price for palay from local farmers to raise its buffer stock.

The action was taken following their thin palay procurement due to private traders outbidding them.

NFA acting chief Larry Lacson said they would buy the clean and dry palay from P23 to P30 per kilo, up from the previous buying range of P19 to P23 per kilo. For the fresh and wet class of palay, the agency would offer P17 to P23 per kilo, up from its former price range of P16 to P19.