NFA allots P45M for its palay buying
National Food Authority (NFA) administrator Jason Aquino assured palay farmers that the agency has sufficient funds to procure their harvest from the main crop starting this month.
“We have remitted a total of P45.1 million to our field offices nationwide particularly in rice producing areas to provide our farmers ready market for their produce. We are ready to buy the harvest of both individual and organized farmers especially when farm gate prices goes down during the peak of the harvest season to prevent grain traders from taking advantage of the glut in supply,” Aquino said.
The NFA buys clean and dry palay at the support price of P17.00 per kilogram, with additional incentives from P0.70-P1.00 per kilogram for delivery (P0.20-0.50), drying (P0.20) and cooperative development (P0.30).
Aquino said the NFA has 293 buying stations nationwide to accept palay deliveries from farmers while mobile procurement teams are ready for deployment to buy palay in far-flung barangays. NFA procurement teams are closely coordinating with farmers’ organizations and local government units (LGUs) for the schedule of deployment should they opt to sell their produce to the agency.
As of September 30, 2017, NFA has procured a total of 309,355 bags of palay under its regular procurement program and Farmers Option to Buy Back (FOBB). Under the FOBB program, the farmers have the option to buy back the same volume of stocks they sold to the Agency within a six-month period should they wish to resell them at higher prices. However, they would have to pay for the additional cost for the maintenance of stocks to the agency.
The agency registered the highest volume of palay procured in Southern Luzon with 100,764 bags followed by Western Visayas with 97,558 bags; and Bicol Region with 40,666 bags as of September 30, 2017. NFA expects that more farmers will be selling their produce to the agency as the harvest season peaks.