NFA falls short of palay procurement target in February

The National Food Authority (NFA) has failed to meet its palay procurement target for the month of February.

In its February 2024 accomplishment report, the NFA said it procured 12,378 bags of palay, or the equivalent to 618.9 metric tons (MT) of the grain, during the month.

This was a measly 2.28% of the grains agency’s target of 542,800 bags or 27,140 MT of palay for the period.

“Decrease in procurement is due to lesser palay harvest, since February is not a harvest season hence the procured palay is just a spill over of the last cropping season,” the NFA said in its report.

“Nevertheless, the National Food Authority shall continue to provide the best service to farmers and farmers organizations, to entice them to sell their produce to NFA,” the agency said.

NFA officer-in-charge Administrator Larry Lacson said that the agency is facing difficulties in procuring palay during the harvest, noting that traders are outbidding them by buying the grain at higher prices than it offers. 

Lacson explained that, based on the NFA’s monitoring, traders buy palay at P25 to P27 per kilo while it only buys palay at a maximum of P23 per kilo.

The NFA Council is set to meet on April 11 to discuss the possibility of adjusting its buying price of palay to make it competitive for local farmers.

Meanwhile, as of February 29, the NFA reported that it has a total expected rice inventory of 825,701 bags or 41,285 MT of palay.

This was equivalent to only over one day buffer stock if compared to the mandated 300,000 MT rice buffer stock that the NFA should maintain, which would be good for nine days.

“It should be noted that NFA’s inventory [is] only part of the national rice inventory of the entire country,” the grains agency said.

Meanwhile, Lacson said the NFA has sufficient stock of rice.

“May stock na si NFA. Dinadagdagan na lang natin ng mga binibili natin ngayon. Sagana po ang ani, mas mataas, mas tataas pa nga from last year. Wala pong shortage, wala po tayong dapat ika bahala," Lacson said.

(The NFA has rice stocks. We're just adding to the stock with our current purchase. The harvest is bountiful, even higher than last year. There is no shortage, and there is nothing to worry about.) — BM, GMA Integrated News