The Department of Agriculture, through the National Food Authority (NFA), is seeking the release of P9 billion this year for palay procurement.

Agriculture Secretary Francisco P. Tiu Laurel Jr., speaking at NFA’s 52nd anniversary on Thursday, said the agency has asked the Department of Budget and Management to release the funds for palay procurement “so we could support the farmers and stabilize prices during the harvest this wet season.”

NFA Administrator Larry Lacson noted that the release of the funds will increase the agency’s budget to around P11 billion, allowing it to achieve a procurement goal of between 6.4 million and 8.7 million bags of palay by the end of the year.

The NFA had been using its leftover budget of P8.7 billion from 2023 to buy palay from farmers earlier this year. In the first half of the year, the NFA spent P5.3 billion on 3.5 million bags of palay.

Secretary Laurel, who chairs the NFA Council, assured farmers the agency will buy their palay at from P21 to P23 per kilo. The NFA Council raised the ceiling price for palay purchases in June to P30 per kilo from P23, while the floor price was lifted to P17 from P16 per kilo.

By maintaining the minimum buying price at P21 per kilo, he said, the agency could address reports of traders purchasing palay in Nueva Ecija at prices between P16 and P17 per kilo.

Lacson said the NFA’s agreement with the National Irrigation Administration (NIA) would allow the agency to more effectively pursue its mandate to build a rice buffer stock.

“Our convergence with NIA and DA regional offices has allowed us to use smaller trucks to go directly to the farms to buy palay, reducing costs for farmers,” Lacson said.

As of 25 September, the NFA has procured a total of four million bags of palay.