PALAY FARMERS NET P32B PROFIT IN FIRST QUARTER OF 2017
The National Food Authority said palay farmers earned around P32 billion from high farm-gate prices during the first quarter of 2017.
During the period, NFA was able to buy 131,720 bags from farmers nationwide at the government support price of P17.00/kg, plus incentives of P0.70 - P1.00/kg for a total amount of P118.5 million. The remaining harvest for the quarter was sold by farmers to private traders at higher prices averaging P19.80/kg.
According to the Philippine Statistics Authority (PSA), the cost of palay production in the country is P12.00/kg. Therefore, farmers who sold their palay to NFA at P850 - P900/bag realized a net profit of at least P39.5 million, while those who sold to traders at an average of P990/bag earned an estimated P390/bag or a total of P31.93 billion net profit.
Even with NFA's intensified palay buying activities and incentives, farmers took advantage of the high prices offered by private traders ranging at P18.00 - P22.00/kg versus the NFA's support price of P17.00/kg plus incentives.
But despite the low procurement accomplishment, NFA Administrator Jason Laureano Y. Aquino said that the agency must be credited for influencing the buying price of palay traders, which benefited the farmers. "It is the mandate of the NFA to stabilize the price of rice in the market and we know that NFA serves as the benchmark for the price of palay. It influences the buying price of private traders to go higher than the support price for them to corner the volume they need. Without NFA as a stabilizer, the traders can dictate the price of palay, short-changing the farmers whenever they can," Aquino explained.
"We don't base our performance solely on how much we have procured because we are limited by the government support price of P17.00/kg. We cannot go beyond that. What is important is that the farmers are enjoying much higher prices from private traders and that is good. The NFA's presence is meant to stabilize the price of palay, not to directly compete with the traders," the Administrator added.
The NFA targets to buy 4.6 million bags (230,367MT) of palay this year to augment its rice requirement for distribution and buffer stocking.
"NFA is here for the security of the farmers. Even in cases when private traders stop buying, or if they lower their buying price, NFA is always open to farmers who want to sell their produce and enjoy a reasonable return. At the present government support price of P17.70 - P18/kg of palay, we are still giving the farmers a net profit of at least P285.00 - P300.00/bag," Aquino said.