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NFA continues to surpass palay buying targets

Despite the onset of the lean months of July to September, a period when palay harvest is very scant as natural calamities traditionally hit various parts of the country, the National Food Authority (NFA) is still able to buy palay from farmers and even surpass procurement targets.

A week before end of July ( as of July 25), the NFA has already bought  271,852 bags of palay, overshooting procurement  target of 159,540 bags by 170 percent for the month,  and bringing the agency’s total palay procurement since January  to 5,688,896 bags.

The top 10 provinces where NFA was able to buy palay for the month of July are: Bulacan – 77,518 bags; Pampanga -41,899 bags; Isabela – 17,094 bags; Camarines Sur – 16,111 bags; Eastern Pangasinan – 16,110 bags; Ilocos Norte – 14,086 bags; Nueva Ecija – 12,324 bags; Cagayan – 9,958 bags; Nueva Vizcaya – 7,341 bags and Kalinga Apayao – 7,077bags.

“Our procurement record, where we have been topping our targets since NFA’s mandate was revised to focus on local procurement for buffer stocking, shows that we have been effectively fulfilling our new role and helping farmers earn a reasonable income while consumers enjoy lower rice prices as a result of the rice import liberalization law passed early this year,” NFA administrator Judy Carol L. Dansal said.

RA 11203 or the Rice Tariffication Law removed NFA’s rice importation function, and repealed its regulatory powers over the grains industry so that the agency could focus on buffer stocking for calamities and emergencies.

“The law stipulates that we can buy only from local farmers so we have stepped up our procurement. That’s why we’re exceeding our targets,” Dansal said.

Another factor that allows NFA to successfully carry out its procurement functions is the adjustment in NFA palay buying incentives. Effective October 2018, the NFA Council approved an additional P3.00/kilo buffer stocking incentive (BSI) on top of the NFA’s P17/kg support price and up to P0.70/kg for drying, delivery and cooperative development incentives.

With the additional BSI, an individual farmer can earn as much as P20.40/kg and farmer cooperatives up to P20.70/kg for clean and dry palay.

Dansal assured farmers that the NFA is ever-ready to buy farmer deliveries in its 303 buying stations spread throughout the country.

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