MANILA, Philippines — The National Food Authority (NFA) procured over 2.4 million 50-kilogram bags of palay in October, the highest level in three years, as its buying price remained competitive against private traders.
The grains agency bought 2.471 million bags of palay or about 123,561 metric tons from local farmers in October, based on its latest accomplishment report.
The volume was the highest in three years or since the 3.339 million bags it bought in October 2021.
The NFA attributed the rise in its palay procurement to the implementation of its higher buying price through the Price Range Scheme and the good harvest during the reference month.
“This scheme provides the buying price of palay per province set at a competitive price level, which is at par or above the prevailing ex-farm price and to be adjusted on a weekly basis,” the agency said.
However, the NFA only achieved nearly 80 percent of its target palay procurement for October of 3.089 million bags or about 154,497.5 MT.
Furthermore, the NFA distributed 71,669 bags (3,583.45 MT) of rice in October, about 16.45 percent of its 435,700 bags (21,785 MT) distribution level.
“Sales to other government agencies for non-calamity purposes were calibrated due to low inventory level of rice stocks, hence low distribution accomplishment,” the NFA said.
The grains agency distributed 47,875.5 bags to various government units for relief operations and calamity response and 23,793.5 bags for rice allowance of state employees.
At the end of October, the NFA had a total rice inventory of 4.894 million bags, equivalent to 244,724.78 MT, representing 9.1 percent of the country’s national rice inventory during the reference period.
In October, the NFA lowered its palay buying price to a range of P23 to P25 per kilo as part of the government’s bid of reducing retail prices of rice while ensuring farmers get substantial profit.
In the same month, the Department of Budget and Management released P9 billion for the palay procurement of the NFA to ensure that it would have enough funding to buy from farmers during the wet season harvest.
Agriculture Secretary Francisco Tiu Laurel Jr. said the budget would boost the government support for farmers during the wet season when palay prices typically decline due to increased harvests and limited drying facilities.