Rice price hike generating P557M

The National Food Authority (NFA) anticipates generating over P557 million in additional sales revenue from selling rice at an increased price to relief agencies and local government units.

This follows the approval in August by the NFA Council, chaired by Agriculture Secretary Francisco Tiu Laurel Jr., of a price hike for the staple grain procured by the Department of Social Welfare and Development (DSWD) and other government agencies.

“The higher selling price agreed upon by the DSWD will help not only reduce NFA losses but also provide additional resources to buy more palay from our farmers,” Laurel said.

Last year, the grains agency incurred a net loss of P6.19 billion as it pursued its mandate to buy palay (unhusked rice) from local farmers to build a nine-day rice buffer stock of about 300,000 metric tons.

According to NFA Administrator Larry Lacson, the extra revenue would allow the agency to procure an additional 400,000 50-kilo bags of palay.

“That’s easily 12,600 metric tons of an incremental rice supply. We thank the DSWD for its understanding and support of this price adjustment,” he said.

Lacson assured that the price increase from P25 to P38 per kilo for the DSWD will not affect market prices.

The DA-attached NFA aims to acquire between 6.4 million and 8.7 million bags of palay during the wet season.