NFA allots P10.9B for 2013 palay procurement

MANILA, Philippines - The National Food Authority (NFA) is allotting P10.9 billion to procure 615,985 metric tons (MT) of palay from farmers this year.

“For us to finally achieve rice self sufficiency, we need to help our local farmers produce more and provide a ready market for their produce,” NFA administrator Orlan A. Calayag said.

The new palay procurement target is a revision of the original target of 591,675 set by the agency last month.

The NFA buys clean and dry palay at P17 per kilogram (kg), with additional incentives such as graduated delivery fee up to a maximum P0.50/kg; drying incentive fee of P0.20/kg; and CDIF of P0.30/kg.

The NFA has also begun implementing new procurement strategies to encourage more farmers to sell their harvest to the food agency instead of to private traders.

The NFA is also lending empty sacks (MTS) to farmer organizations using their Cooperative Development Incentive Fund (CDIF). It is also operating buying stations in far-flung areas where the NFA’s chance of being able to buy is greater.

The grains agency is also coordinating with the Municipal Agriculture Office (MAO) and surveys areas where harvesting is ongoing and is deploying mobile procurement teams especially in areas where ex-farm prices are low.

“We need to give farmers a better deal so that they would be motivated to produce more,” Calayag said.

He said that the food agency has enough funds to buy the farmers’ produce. 

The NFA has also simplified its requirements for selling palay to the agency so that it could serve palay farmers more efficiently. Individual farmers will simply submit a certification from either the LGU-Municipal Agriculture Office (LGU-MAO) or the Department of Agrarian Reform-Municipal Agrarian Reform Office (DAR-MARO) indicating the hectarage planted to palay and yield per hectare and whether the area cultivated is irrigated or not.

Farmer applicants are also issued a passbook free of charge. Farmers can go directly to NFA provincial offices or NFA satellite buying stations near their area.

Meanwhile, farmers’ cooperatives/associations or organizations need only to submit registration certificates from the Cooperative Development Authority (CDA) or Securities and Exchange Commission (SEC) or any registration certificate from concerned government agencies. They should also submit a list of farmer-members certified by the LGU-MAO, whichever is applicable, indicating hectarage whether irrigated or not and the yield per hectare.

The country intends to produce 20.4 million MT of palay in 2013 after producing 18.03 million MT in 2012.