The National Food Authority (NFA) said their palay procurement from local farmers would continue despite the imported rice tariff reduction from 35 percent to 15 percent.
NFA administrator Larry Lacson underscored that the agency’s mandate is to buy rice from local farmers intended for national rice buffer stock, to be used in emergencies, and to sustain disaster relief programs during calamities.
“In my opinion, the lowering of the tariff on imported rice has nothing to do with the NFA’s buying price,” he over the weekend during the agency’s palay (unmilled rice) procurement activities in San Ildefonso, Bulacan.
“Even if they lower that to zero, we will buy at the price that will help and profit the farmers. Not just because the tariff was lowered to 15 percent, we will also lower our buying price,” he added.
Lacson assured farmers they would continue to buy palay from them at higher prices since they “want them to continue planting and we want them to earn.”
On Tuesday, the National Economic and Development Authority (NEDA) lowered rice tariffs to make its prices more affordable.
According to NEDA Secretary Arsenio Balisacan, the rice tariffs, which were slashed to 15 percent for both in-quota and out-quota rates, will be extended until 2028.
Lacson, likewise, said the tariff reduction for imported rice should not cause worry to the local farmers.
“They will probably worry if the NFA lowers (its buying price) and follows the lowering of the tariff. But no, our pricing is totally independent of the tariff. That is not our mandate,” he said. “We will buy at the price we think is profitable for the farmers and fill our buffer stock.”
Despite the end of the harvest season, the NFA chief said the palay procurement from farmers is ongoing and is currently 98 percent complete vis-a-vis their target.
As of Friday, he said they have already procured 3.290 million 50-kilo bags of rice. The two percent remaining in NFA’s target palay completion for the first half of 2024 is equivalent to 72,000 palay bags.
A total 495,000 metric tons of palay is the target for this year, of which 60 percent will be procured in the wet season harvest, said Lacson.
