NFA to boost procurement activities

MANILA, Philippines - The National Food Authority (NFA) yesterday announced that it would intensify palay (unhusked rice) procurement this year as the farmgate prices of unmilled rice have begun falling to P14 to P16 per kilogram in several areas.

NFA administrator Renan Dalisay said “massive” procurements would be conducted in Iloilo, Palawan, Sultan Kudarat, Antique and Isabela provinces.

As of the second week of January, the average farmgate price of palay has been placed at P18.90 per kilogram, making it more attractive for farmers to sell their produce to traders.

The NFA buys clean and dry palay at P17 per kilogram, providing additional incentives such as graduated delivery fee of up to a maximum P0.50 per kilogram, drying incentive fee of P0.20 per kilogram, and Cooperative Development Incentive Fund assistance of P0.30 per kilogram.

The NFA targets to procure 189,845 metric tons (MT) of palay from January to June this year.

As of Feb. 9, the food agency has already bought a total of 89,497 50-kilogram bags of palay.

The procurement would be conducted in 413 buying stations nationwide. Mobile procurements units are also ready to be deployed to remote areas where farmers may find it difficult to transport their produce to NFA buying stations.

“The NFA is ready to buy everything. We have sufficient funds to buy their palay produce,” said Dalisay.

Earlier, he said the state-run grains procurement agency is reviewing the incentives that could be provided to farmers who sell their produce to the government.

The agency currently procures the equivalent of seven to eight percent of the total domestic rice production. Last year, domestic rice production reached 18.97 million MT.

Dalisay said that while the palay buying price of NFA rice could be lowered, other incentives, such health insurance is being considered for farmers that would conform to NFA buying standards.

Food Security chief Francis Pangilinan said the increased procurement to be conducted this year would increase farmers incomes.

“This is a very progressive step by the NFA,” he said.

The public may inquire about palay buying outlets through the Text NFA hotline number 09064363133.