THE National Food Authority (NFA) in Negros Occidental has procured 704 bags of palay (unhusked rice), or about 35,000 kilograms, from farmers and associations in the province since the implementation of additional P3 per kilogram incentive.
In October 29, the agency launched its new procurement program in the province, making the buying price of palay higher at P20.70 per kilogram from only P17.70 per kilogram.
Under which, the NFA is providing an additional P3 per kilogram Buffer Stocking Incentive (BSI) on top of other existing incentives of P0.70 and basic buying price of palay at P17 per kilogram.
The P0.70 per kilogram incentives earlier given to farmers are comprised of drying incentive of P0.20, delivery incentive of P0.20, and the cooperative development incentive fee of P0.30 intended for associations where they belong.
Frisco Canoy, provincial manager of NFA-Negros Occidental, told SunStar Bacolod on November 11 that all farmers and associations who have sold their palay to the agency availed themselves of the P3 per kilogram incentive for buffer stocking.
Canoy said the 704 bags were sold by farmers and associations from the northern portion of Negros Occidental through the NFA's buying station in San Carlos City.
"While we continue to implement the new procurement program, harvests among farms in the southern portion of the province are already about to end thus, palay for sale is limited," he said, adding that "unlike of those in the north, harvest is still at its peak."
The new procurement program of palay was first launched in San Jose, Occidental Mindoro on October 12 after the approval of the NFA Council earlier last month.
This is in response to the clamor of farmers to increase the P17 per kilogram buying price of palay, which has been implemented for about 10 years already, amid the increasing production cost.
The NFA-Negros Occidental earlier said that average production cost in the Philippines is pegged at P12 per kilogram, higher than P8 per kilogram in other countries like Vietnam and Thailand.
So with P20.70 per kilogram buying price and incentive, local farmers will have a higher income of at least P8 per kilogram.
The agency continues to encourage local farmers and associations to sell their palay to the NFA as a measure to help them boost profitability.
In Negros Occidental, there are three buying stations located at the NFA's warehouses in San Carlos City, Ilog town and Bacolod City.
Canoy, however, said that the procurement team may go directly to the associations who intend to sell a volume of inventory.
"They just have to coordinate with us," he said, adding that they expect an increase in the volume of palay being purchased from local farmers and associations as their campaign continues and many farms are still harvesting.