The Department of Agriculture, through the National Food Authority, is seeking the release of P9 billion this year for palay procurement.
“The NFA asked the Department of Budget and Management to release the funds for palay procurement so we could support farmers and stabilize prices during the harvest this wet season,” Agriculture Secretary Francisco Tiu Laurel Jr. said.
“The release of the funds will increase the agency’s war chest to around P11 billion to achieve a procurement goal of between 6.4 million to 8.7 million bags of palay before year end.”
NFA Administrator Larry Lacson said the release of the funds will increase the agency’s war chest to around P11 billion to achieve a procurement goal of between 6.4 million to 8.7 million bags of palay before year end.
NFA has been using the left over budget of P8.7 billion from 2023 to buy palay from farmers earlier this year. In the first half, NFA spent P5.3 billion for 3.5 million bags of palay.
Tiu Laurel, who chairs the NFA Council, assured farmers that the agency will buy palay between P21 and P23 per kilo of palay. The NFA Council in June raised the ceiling price for palay purchases to P30 a kilo from P23 a kilo while the floor price was lifted to P17 from P16 per kg.
“By keeping the buying price at a minimum of P21 a kilo, it could address reports that traders are buying palay in Nueva Ecija at P16-P17 a kilo.”
By keeping the buying price at a minimum of P21 a kilo, the agriculture chief said it could address reports that traders are buying palay in Nueva Ecija at P16-P17 a kilo.
Lacson said its agreement with NIA will allow the agency to more effectively pursue its mandate of building a rice buffer stock.
“Our convergence with NIA and DA regional offices has allowed us to use smaller trucks to go directly to the farms to buy palay, reducing the cost of farmers,” he explained.
NFA has already procured as of Sept. 25, 2024, a total of 4 million bags.
