As the first half of 2024 draws to a close, the National Food Authority (NFA) is poised to surpass its procurement target, driven by the increased purchasing price of rice.
NFA Acting Administrator Larry Lacson said that they are expecting to reach a palay procurement level of 3.08 million or 50-kilo bags after adjusting their buying price last April.
Since then, palay procurement has cost them P23 to P30 per kilo for clean and dry, while P17 to P23 for fresh and wet rice.
“At 2.93 million bags, we’re now at 97 percent of our buying target for the first half with the whole month of June left. Farmers in several provinces in northern Luzon have yet to complete their harvest and they’ve appeal to the NFA to continue with our procurement,” he said.
Prior to the competitive prices, the food authority only attained 142,244 bags of palay since private traders bumped up their purchasing to secure supply during the El Niño season.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. lauded the NFA’s decision to boost the rice buffer stock just in time for the onset of La Niña.
“We are also happy that our rice farmers, as envisaged by President Ferdinand Marcos Jr., are getting a financial windfall from the higher procurement price of the NFA,” he said.
“The NFA has also started implementing a so-called fastlane to quickly service farmers selling no more than 50 bags of palay,” the DA chief added.
Subsequently, Lacson shared that they have only spent half of the P9 billion procurement budget over the past six weeks since they have bumped up the price. Under the spent funding were able to secure an additional 2.8 million bags of rice.
“[We] have about P8 billion left over from last year’s procurement outlay to buy more rice stocks,” he said. “Our problem now—and it is a pleasant one—is that we are running out of space in our warehouses, especially in Region II,” said Lacson.
To address this dilemma, Lacson ordered the NFA personnel to begin stock milling to supply the 500,000 bags required by the Department of Social Work and Development (DSWD).
Aside from the higher buying price, the DA along with other government agencies are striving for ways to minimize the cost of the national food staple to lessen the burden for consumers.