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Manila Bulletin devider Business devider DA, NFA raise palay buying price to boost farmer competitiveness

DA, NFA raise palay buying price to boost farmer competitiveness

Published Apr 11, 2024 09:02 am

The Department of Agriculture (DA) and the National Food Authority (NFA) recently announced price adjustment for palay to boost farmer competitiveness.

Agriculture Assistant Secretary and Spokesperson Arnel de Mesa said on Thursday, April 11, that the new buying price will range from P23 to P30 per kilo, while the fresh palay will be around P17 to P23 per kilo.

“Before, clean and dry [palays were valued] at P19 and P23, [respectively],” he added. The last price change was set in September 2023.

De Mesa assured that this modification would still purchase an ample supply of palay for buffer stock.

Furthermore, the reason for increasing the buying prices for palay is because of the prevailing farmgate prices, which were said to weigh around P25 to P26.9.

“If the NFA’s buying price is P23, they can only buy a minimal amount… That’s why we’re bumping the price a little so that the NFA can keep up with the trader’s offers.”

Both the DA and NFA have shared their recent plans to visit Mindoro to check how many palay stocks they can purchase, as De Mesa states, “They have a [competitive] harvest. So the palay purchasing can be aggressive.”

“Generally we purchase [palay] in warehouses,” said NFA officer-in-charge administrator Larry Lacson regarding the procurement process. “In fact, I was able to speak with other DA officials in my last budget meeting in Bicol.”

Lacson describes the price adjustment as aggressive buying or ammunition in competitive purchasing.

Despite the competitive outlook for palay purchasing, De Mesa reiterated that the P23 to P30 price won’t be offered immediately.

“We still have the Palay Assistance to Legislators and Local Government Units [PALLGU],” he said. “LGU’s with PALLGU will procure additional funding.”

The PALLGU program allows the NFA to buy palay stocks directly from accredited farmer organizations.

Meanwhile, the NFA shared that they’re getting support from the DA in terms of visiting rice farmers in remote areas. This action ensures both agencies that are able to reach out to farmers regarding purchasing adjustments.

Lacson also hoped to modernize farm mechanizations, as he said that the previous administration was challenged with low drying capacity.

Related Tags

National Food Authority (NFA) Palay Prices Rice farmers DEPARTMENT OF AGRICULTURE
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