Manila: The National Food Authority (NFA) on Tuesday announced it will soon procure storm-damaged palay (unhusked rice) in typhoon-hit areas to help Filipino farmers recover. In a press conference, NFA Administrator Larry Lacson assured farmers that the agency’s buying price will not drop to a single-digit level, unlike the reported rates of traders in some areas of the country amid heavy rains during the peak harvest season.
According to Philippines News Agency, the intervention will be implemented under the forthcoming executive order on the procurement of palay, earlier announced by Agriculture Secretary Francisco Tiu Laurel Jr. Lacson emphasized that the national government will not allow prices to fall to single-digit levels, as it aims to support farmers in distress.
Lacson stated that the NFA’s buying price will be approximately PHP2 to PHP3 per kilogram lower than the flexible Price Range Scheme (PRICERS), currently set at PHP23 per kg for dry palay and PHP17 per kg for wet palay. On Monday, Tiu Laurel reported that traders’ buying prices of palay had plunged to PHP8 per kilogram after reaching about PHP14 per kg in some areas, with sporadic reports of PHP6 per kg, as farmers struggle to dry their output amid the rains.
Lacson stressed the NFA’s commitment not to cause losses for farmers, acknowledging the production costs. He expressed optimism that the NFA’s buying price will help elevate traders’ offers for storm-damaged palay in affected areas. The NFA plans to secure a significant portion of the market to influence prices positively.
The NFA will prioritize the procurement of dry storm-damaged palay for faster disposal. Meanwhile, Tiu Laurel mentioned that the government will soon establish a floor price for palay to protect rice producers from declining farmgate prices. Lacson highlighted the urgency of issuing the necessary orders to address the current price drop following the storm.
Lacson revealed a proposed budget of about PHP3 billion for the emergency procurement of palay, which will also cover logistics, operational expenses, and rental fees for additional NFA warehouses. The NFA is assessing the availability of private warehouses for rent to accommodate larger palay volumes.
As of Tuesday, the NFA’s national rice stock inventory stands at 446,000 metric tons (MT), equivalent to 8.9 million bags of milled rice, or sufficient for 12 days.