The National Food Authority (NFA) said over the weekend it surpassed its revised palay (unmilled rice) procurement target in the first half of 2024 after procuring 3.37 million 50-kilogram bags.
Agriculture Secretary Francisco Tiu Laurel Jr. attributed the program’s success to the policy changes implemented by the NFA.
“We are very pleased with the outcome of the NFA Council’s decision to raise palay procurement price. We will continue with this program to ensure our rice farmers enjoy the fruits of their hard work,” he said.
Based on the latest report, palay bought by the NFA from farmers exceeded the upgraded target of 3.37 million bags by 0.3 percent, or about 168,262 metric tons.
This volume is sufficient to cover four days of national rice consumption in case of emergencies.
NFA acting administrator Larry Lacson said the agency is committed to continuing palay procurement at prices exceeding market rates.
“We continue to scour the countryside for additional palay that we could buy to bolster the national buffer stock,” he said.
Despite the high purchases at increased prices, the NFA still has around P12 billion remaining from its total P17-billion budget allocated for rice procurement this year, including funds carried over from the previous year.
The funds ensure continued buying activity in the second half.
The NFA Council made a crucial decision in mid-April to raise the buying price for palay to P30 per kilogram (kg) from P23, while the base price for wet palay rose from P16/kg to P17/kg.
The DA provides additional support through various programs, including those funded by the Rice Competitiveness Enhancement Fund established under the Rice Tariffication Law.
