NFA secures P9B to procure palay for rest of 2024

The National Food Authority (NFA) has secured the budget to procure palay for the remaining months of the year as part of its buffer-stocking mandate.

In a statement on Thursday, Agriculture Secretary and NFA Council chairman Francisco Tiu Laurel Jr. announced that the P9-billion palay procurement funding will be released by the Department of Budget and Management (DBM) in equal installments for the final three months of the year.

Tiu Laurel said the budget could 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 will have enough funds to support rice farmers through the wet season, which is critical for their livelihoods during this challenging period,” he said.

NFA Administrator Larry Lacson said the timely release of the budget will enable the agency to purchase approximately 7.2 million 50-kilo bags of palay at P25 per kilo.

“This volume aligns well with the NFA’s wet season palay procurement target of 6.4 million to 8.7 million bags,” added Lacson, indicating NFA’s commitment to meeting its procurement goals.

The NFA has adjusted its buying price range to P23 to P25 per kilo.

The adjustment reflects the declining global prices of rice and aims to reduce the cost of the food staple for Filipino consumers.

“We recognize the need to balance farmer support with consumer needs, and this adjustment is a step toward achieving that goal,” Tiu Laurel said.

Despite the lower buying price, Tiu Laurel said that farmers would still see a favorable return on their efforts.

“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,” he said. — VBL, GMA Integrated News