NFA sets aside funds to buy more local palay

State-run grains agency National Food Authority (NFA) had set aside a few million bucks to buy more palay from local farmers as part of the efforts to boost the country's buffer stock.

This, while NFA is also facing delay in the arrival of portion of the rice imports it ordered last July.

NFA administrator Jason Laureano Aquino assured palay farmers that the agency has sufficient funds to procure their harvest from the main crop starting this month.

“We have remitted a total of R45.1 million to our field offices nationwide particularly in rice producing areas to provide our farmers ready market for their produce. We are ready to buy the harvest of both individual and organized farmers especially when farm gate prices goes down during the peak of the harvest season to prevent grain traders from taking advantage of the glut in supply,” Aquino said.

The NFA buys clean and dry palay at the support price of R17.00 per kilogram, with additional incentives from R0.70-R1.00 per kilogram for delivery (R0.20-0.50), drying (R0.20) and cooperative development (R0.30).

Aquino said the NFA has 293 buying stations nationwide to accept palay deliveries from farmers while mobile procurement teams are ready for deployment to buy palay in far-flung barangays.

NFA procurement teams are closely coordinating with farmers’ organizations and local government units (LGUs) for the schedule of deployment should they opt to sell their produce to the agency. As of September 30, 2017, NFA has procured a total of 309,355 bags of palay under its regular procurement program and Farmers Option to Buy Back (FOBB).

Under the FOBB program, the farmers have the option to buy back the same volume of stocks they sold to the Agency within a sixmonth period should they wish to resell them at higher prices. However, they would have to pay for the additional cost for the maintenance of stocks to the agency.

The agency registered the highest volume of palay procured in Southern Luzon with 100,764 bags followed by Western Visayas with 97,558 bags; and Bicol Region with 40,666 bags as of September 30, 2017. NFA expects that more farmers will be selling their produce to the agency as the harvest season peaks.

Philippine Statistics Authority (PSA) data showed that farm gate price of palay averaged at R19.33 per kilogram in the fourth week of September. However, this is lower by 0.66 percent compared to the third week of September where the average price of ex-farm price was R19.46 per kilogram.

Based on the monitoring of NFA field offices, farm gate price of palay is highest at R22.15 per kilogram in Northern Mindanao and lowest at R16.95 per kilogram in Western Visayas. “NFA’s presence is meant to stabilize and not to compete directly with private traders,” Aquino said.