Gov’t moves to buy local palay as prices plunge

The Department of Agriculture (DA) and the National Food Authority (NFA) will buy palay or unmilled rice from local farmers at P19 per kilo in light of plunging farmgate price of the staple crop.

Agriculture Secretary William Dar said the National Food Authority (NFA) would expand its palay procurement and buy the rice harvest of farmers in their villages.

“This early, we have put in place the buying stations of NFA all over the country. They will buy dry and clean palay at P19 per kilo, at 14 percent moisture content,” he said in a radio interview.

The NFA will also help pick up the produce if farmers don’t have the means to deliver it, Dar said.

The agriculture chief said they had received reports that farmgate prices of palay had plummeted to P15.

But some farmers’ group said the price further dropped to P12 which is the breakeven rate for the grain.

The drastic depression in palay prices from P20 a kilo earlier this year was blamed on the surge in imports due to high demand for rice as people went into panic buying at the height of the quarantine restrictions.

Dar said the agency will buy as much as possible from rice farmers using its P10-billion procurement fund this year, he said.

He had also instructed the NFA to roll-over twice its procurement fund so it could buy P20-billion worth of palay this year.

The DA earlier urged provincial local government units (LGUs) and the private sector to buy palay and corn directly from farmers to prop up prices.

In an earlier statement, Dar said provincial governments could avail of loans from the Land Bank of the Philippines (LandBank) of up to P2 billion at 2 percent interest to procure palay, and acquire farm machineries and postharvest facilities.

In 2019, the country’s top 12 rice producing provinces were Nueva Ecija, Isabela, Pangasinan, Cagayan, Iloilo, Camarines Sur, Tarlac, Negros Occidental, Maguindanao, Bukidnon, North Cotabato, and Leyte.

They produced more than 9.74 million metric tons (MMT) of palay, roughly 52 percent of the country’s total harvest of 18.815 MMT last year.

Palay prices are expected to

Meanwhile, the National Food Authority (NFA) Capiz Provincial Office has designated its warehouses in Brgys. Bolo and Lawaan in Roxas City, Brgy. Sta. Cruz in Dumalag town and Brgy,. Mangoso in the municipality of Sigma as palay buying stations in view of the government’s ongoing palay procurement from local farmers.

NFA Capiz Public Information Officer Mary Christie Hari-on said that NFA continues to buy clean and dry palay with 14 percent moisture content at P19 per kilogram amidst the COVID-19 pandemic.

The government’s buying price on palay is amidst the prevailing farm gate price of palay in the province at P13.00 to P15.00 per kilogram among private palay traders.

“Walk-in, individual and farmers organizations/group/associations who wished to sell their palay to NFA are required to present a farmers passbook,” Hari-on noted, adding that this can be secured for free at the NFA Capiz provincial office in Bolo.

She added that NFA strictly imposes standard health protocols which require all clients to wear face shield and face mask upon entry to NFA compound and offices.

Disinfection, preventive spraying and fogging are also conducted at the NFA warehouses and premises every two weeks or if the need arises to prevent infestation of stocks, drive away dengue-carrying mosquitoes and protect the place from COVID-19.

Based on records, the NFA-Capiz has already procured a total of 159,014 bags from January to September 22.

The figure is 124 percent accomplishment out of the 128,100 bags target for the period.

Palay procurement in preparation for calamities and emergencies is NFA’s new mandate pursuant to RA11203 or the Rice Tariffication Law. (With reports from ABS-CBN and PIA)