DA optimistic in local rice production amid increase in palay buying price

The Department of Agriculture (DA) expressed optimism on Friday that the local rice production will kick up following the National Food Authority (NFA) increasing their palay purchase prices on farmers.

According to DA spokesperson Asec. Arnel de Mesa, the implications of the NFA's higher buying prices for palay would include encouraging farmers to plant more rice.

"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, stressing 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 that 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 with higher purchase prices.

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.