THE National Food Authority (NFA) is boosting its palay procurement operations with an eye on at least 300,000 metric tons this year pursuant to its buffer stocking policy to be able to meet increased demands during the lean months and in times of calamities.
The agency said since Sept. 20 last year, it has increased its buying price for clean and dry palay to P23.00 per kilogram (kg). It also buys fresh palay with a moisture content of 22-29 percent at P19/kg.
NFA acting administrator Larry Lacson said a key strategy to compete with private traders is to collaborate with local government units (LGUs) through the Palay Marketing Assistance Program for Legislators and Local Government Units (PALLGU).
The program allows LGUs to contribute additional funds, thereby boosting the NFA’s buying price.
Camarines Norte, for instance, is one of the LGUs actively working with the NFA to heighten palay procurement and boost the national inventory.
The province agreed to supplement the NFA’s buying price by P5 per kilogram, following the signing of a memorandum of agreement (MOA) last Feb. 27 to enforce the PALLGU program.
With the MOA in place, farmers get to sell their produce for clean and dry palay in Camarines Norte at P24 to P28/kg. for wet or fresh harvest.
Lacson said other LGUs across the country contribute to the NFA’s procurement program.
The provinces of La Union, Bukidnon, and cities and municipalities like Zamboanga City, Midsayap in North Cotabato, Calapan City in Oriental Mindoro, Candon in Ilocos Sur, Malolos in Bulacan and Conner in Apayao have also started offering premiums ranging from P1 to P5 per kilogram.
