Higher buying price boosts NFA palay procurement in July

MANILA, Philippines — State-run National Food Authority (NFA) saw its palay procurement in July surge to over 11,000 metric tons (MT) thanks to higher buying price despite the onset of the lean season.

The NFA said it purchased about 11,212 MT of palay or unmilled rice from local farmers, higher by more than 2,800 percent than the 383.65 MT it bought in the same month of last year.

The NFA noted that it surpassed its palay procurement target of 10,045 MT by 11.6 percent despite July being the start of the lean season or when palay harvest in the country is minimal.

“This success is largely attributed to the ongoing PRICERS program, which effectively encouraged more farmers to deliver and sell their palay harvests to the NFA, particularly in regions experiencing sporadic harvests,” the agency said in its latest accomplishment report.

PRICERS refers to the NFA’s price range scheme that governs the agency’s buying price for its procurement activity.

Under PRICERS, the NFA purchases clean and dry palay with a price range of P23 to P30 per kilogram depending on the prevailing market price in a given locality or province. On the other hand, the agency buys fresh or wet palay for P17 to P23 per kilogram.

The PRICERS program was approved by the NFA Council last April with the aim of allowing the grains agency boost its capacity to procure palay from local farmers for its buffer stock.

At the end of July, the NFA said it had a total rice inventory of about 150,652 MT, representing at least 6.88 percent of the country’s national rice inventory during the reference month.

The NFA distributed 2,686 MT of milled rice during the reference period, representing 9.79 percent of its target of 27,430 MT.

“Sales were calibrated due to low inventory level of rice stocks, hence low distribution accomplishment,” the agency said.

The NFA distributed 738.2 MT of rice to Department of Social Welfare and Development, Office of Civil Defense, legislators and local government units (LGUs) for relief operations and calamity response.

Some 1,892 MT of rice were distributed by the NFA to government agencies and LGUs for their rice requirement under Executive Order 51 that allows agencies to provide rice as incentives to their employees.

The NFA also released 55 MT for the one-time rice allowance of qualified government employees and workers pursuant to Administrative Order No. 2, series of 2022.