Grains retailers in country oppose plan to scrap NFA

The Grain Retailers Confederation of the Philippines is opposing the plan to abolish the National Food Authority as proposed by Senator Manuel Villar on the ground that the agency plays a vital role in maintaining the stability of prices.

Villar's only reason for proposing the abolition of NFA is that it is not generating any income for the government.

But Grecon national president Teresa Alegado said that it was understood from the very start that the NFA was not created to generate income.

Meanwhile, the organization and farmers have adopted a grain exchange program in order to cut shipping cost that is contributory to increases in prices.

The new scheme is called the Grain Exchange Program of Farmers and Grain Retailers Association. Alegado said that the scheme is implemented in areas called deficit areas like Cebu where there are no large rice fields.

Under the program, retailers will buy the palay of farmers from other provinces without the hassle of paying shipping cost.

Alegado said once her group negotiates with farmers from other provinces, retailers in Cebu will buy rice from the National Food Authority outlet in Cebu and the farmers will deposit their rice at the NFA outlet in their area equal to the quantity retailers have ordered.

Alegado said the NFA would facilitate the payment to farmers. - Gregg M. Rubio