IN A bid to boost the country’s buffer stocks, the National Food Authority (NFA) has started procuring rice grains, or palay at a higher price.
In a statement, the NFA said the council approved the buying price for fresh or wet rice grains to a range of P17 to P23 from a previous price range of P16 to P19 per kilo, while clean and dry costs P23 to P30 from P19 to P23 per kilo.
It noted that fresh and wet grains, which will be procured, must have a moisture range of 22-29.9 percent, while clean and dry should at least be 90 percent pure and with moisture of no more than 14 percent.
“This new pricing scheme will mark a new era for NFA palay buying,” said NFA acting administrator Larry Lacson.
“This is unique in a sense that different provinces will have different prices depending on the conditions in the province, such as prevailing farm gate price, remaining harvest, and most importantly the target palay procurement for the area,” he added.
He said that with the new price limit, the NFA is expected to increase its buffer stock of palay to nine days’ worth from its current one day’s worth stock.
Lacson said the NFA council considered the support price provided by some local government units to help the farmers improve their income by being a viable alternative to private traders.
He said it was also due to the prolonged high farm gate prices to secure supply.
Under the Rice Tariffication Law, the NFA is no longer allowed to take part in rice trading as its function was limited to buffer stocking to ensure rice supply in case of disasters and calamities.
The agency is also required to maintain a stock of around 300,000 tons of rice, which is enough for nine days consumption.
Federation of Free Farmers Cooperatives national manager Raul Montemayor said the move of the NFA was too late as the harvest season was about to end and that traders now have more palay stocks. (TPM/SunStar Philippines)