NFA wants to buy palay at P22/kg in 2018

THE National Food Authority (NFA) is hoping to raise its buying price for palay, or unmilled rice, to allow the agency to increase its purchase volume, though it faces budgetary hurdles in doing so.

“We will recommend a higher buying price from P17 to P22 per kilogram so we can purchase more palay,” NFA Grains Marketing Operations Director Rocky L. Valdez said in an interview with

The new purchase price will follow President Rodrigo R. Duterte’s directive to increase palay procurement.

Next year, the state-run grains agency is aiming to purchase about five times its 2017 palay procurement target.

Last month, the NFA during a Congressional budget hearing said its 2018 plan is to procure 1.2 million metric tons (MT) of palay from domestic farmers.

NFA’s palay purchasing target this year is 230,367 MT.

“As of Sept. 14, we have only bought 283,166 bags (or 14,158.3 MT),” NFA Spokesperson Rebecca C. Olarte said in a text message on Monday, noting that the dry-season harvest makes up only 30% of the agency’s annual procurement.

The proposed 2018 palay procurement suggests a funding requirement of P21.6 billion, though the NFA’s approved budget at the House is only P7 billion.

“With the P7 billion, we will not be able to procure much,” said Ms. Olarte.

Ms. Olarte added that the NFA may submit its proposed increase in palay buying price to the interagency NFA Council after the Senate approves the agency’s 2018 budget proposal.

But NFA’s Mr. Valdez said economic managers may still veto the plan due to the inflationary impact of higher rice prices.

“The share of rice in the food basket is high. I am not certain the economic managers will allow it,” Mr. Valdez added. —