NFA seeks release of P9-B fund for palay procurement

The National Food Authority (NFA) is seeking the release of P9 billion to boost its palay procurement activities this year.

"The NFA asked the Department of Budget and Management to release the funds for palay procurement so we could support farmers and stabilize prices during the harvest this wet season," said Agriculture Secretary Francisco Tiu Laurel Jr.

NFA Administrator Larry Lacson said the release of the funds is expected to increase the rice buffer-stocking agency’s war chest to around P11 billion and help hit its procurement goal of between 6.4 million and 8.7 million bags of palay before the year ends.

The NFA has been using a leftover budget of P8.7 billion from 2023 to buy palay from farmers.

In the first half of 2024, the agency spent P5.3 billion for the procurement of 3.5 million bags of palay.

Tiu Laurel, who chairs the NFA Council, assured farmers that the agency would buy palay at P21-P23 per kilo.

In June, the NFA Council raised the ceiling price for its palay purchases to P30 per kilo from P23 a kilo, while the floor price was increased to P17 from P16 per kg.

By keeping the buying price at a minimum of P21 a kilo, Tiu Laurel said it could address reports that traders are buying palay in Nueva Ecija at P16-P17 a kilo.

The NFA has already procured, as of September 25, 2024, a total of 4 million bags. —VBL, GMA Integrated News