NFA palay buying tops 5 million MT

MANILA, Philippines — The National Food Authority (NFA) has already procured 5.17 million bags of palay (unhusked rice) from local farmers, exceeding its 4.65 million target for the first half  despite lower farm gate prices.

“The rice liberalization law forced the agency to refocus its function on buffer stocking. Since the law says we can buy only from local farmers, we have stepped up our procurement,” newly-appointed NFA administrator Judy Dansal said.

NFA’s procurement activities have been revitalized by the agency’s new buying price, which increased from P17.70 to P20.70 per kilo for clean and dry palay.

The agency  bought the palay from surplus areas like Mindoro, Nueva Ecija, Isabela, Bulacan, Cagayan, North Cotabato and Sultan Kudarat.

Dansal said NFA could buy more from farmers in preparation for the onset of the lean months starting July to September when harvest is sporadic and natural calamities hit the country.

“It is very timely that we are able to beef up our stocks. We will have sufficient supply of good quality rice for the requirements of government relief agencies and local government units in any emergency or calamity that traditionally hit the country during the lean months,” Dansal said.

“This will lead to more procurement for us to eventually meet our buffer stocking requirement of rice supply good for 15 or 15 to 30 million bags,” she said.

NFA is currently buying an average of 73,233 bags per day. For this year,  It increased its  palay procurement target  from 7.78 million bags to 14.46 million bags.

So far, NFA has expanded its share in the rice market to 11.76 percent from an average of 9.18 percent last year.