Wet season palay procurement budget set at P9 billion — NFA

THE National Food Authority (NFA) said on Thursday that its procurement budget for unmilled rice for the remainder of the year has been set at P9 billion, which will go towards grain acquisition for wet season rice.

“The funding will help the government support rice farmers during the wet season, when palay prices typically decline due to increased harvests and limited drying facilities,” the NFA said in a statement.

Agriculture Secretary Francisco P. Tiu Laurel, Jr. said that the Department of Budget and Management (DBM) will release the funds in equal installments over the remaining months of the year.

The NFA has used up its P8 billion carry over funding for palay procurement from last year.

NFA acting Administrator Larry R. Lacson said the NFA plans to procure about 7.2 million 50-kilo bags of palay at P25 per kilo.

“This volume aligns with the NFA’s wet season palay procurement target of 6.4 million to 8.7 million bags,” Mr. Lacson added.

The NFA has adopted a new pricing scheme for palay, now offering between P23 and P25 per kilo from the previous P25-P27.

“Even at this adjusted price, farmers will continue to benefit from their hard work, especially given the improved price range we implemented earlier this year,” Mr. Laurel added.

In the first half, the NFA used P5.3 billion to purchase 175,000 metric tons (MT) of palay, equivalent to 3.5 million bags, from domestic farmers.

The NFA is targeting a palay inventory of 435,000 MT by the end of the year. It is required to maintain a rice reserve equivalent to about nine days’ demand. — Adrian H. Halili