NFA mulls more incentives for rice farmers

MANILA, Philippines - State-run National Food Authority (NFA) is reviewing the incentives that could be provided to farmers to sell their palay (unmilled rice) to the agency, NFA administrator Renan Dalisay said yesterday.

He said 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.

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.

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.

Dalisay said that while the palay buying price of NFA rice cannot be lowered, other incentives are being studied such as the provision of health insurance to farmers that would conform to NFA buying standards.

“We are reviewing the provision of other incentives such as Philhealth insurance for farmers to sell to NFA,” he said.

The NFA currently imports most of the rice requirement for buffer stocking. This year, the state grains procurement agency may import between 500,000 metric tons (MT) to 600,000 MT of rice.

The NFA Council still has to a decide on the import specifications.

The NFA yesterday launched the Bantay Bigas initiative with civic organization Kaya Natin! Movement for Good Governance and Ethical Leadership.

The initiative aims to constantly monitor the prices and movement of commercial rice and NFA rice sold at various markets nationwide.

The movement also seeks to enjoin other civic society groups and local government units in monitoring the price and availability of commercial and NFA rice in various selling points.

The participants, said food security chief Francis Pangilinan, would ultimately help the agency assess the status of ice supply in the country.

In a related development, the NFA assured the public that no substandard rice from Thailand has entered the country after the completion of deliveries of orders in December.

The Philippines, in October 2014, awarded the supply contract for the importation of 500,000 MT of rice from Vietnam and Thailand, out of which, 300,000 MT came from Thailand.

In the last quarter of 2014, around 90 percent of the Thai government’s rice stocks have been found to be of substandard quality.

Dalisay said, however, that Thai rice exports to the Philippines have undergone strict quality control measures to eliminate exports not fit for consumption.

He noted that “ a minimal volume” of substandard rice that arrived in the country had been sent back to suppliers.