The Department of Agriculture (DA) through the National Food Authority (NFA), is seeking the release of P9 billion this year for palay procurement.
This developed as DA Secretary Francisco Tiu Laurel said he expects the availability by next year of a P5-billion buffer fund to be utilized for procurement and stockpiling of rice and other agricultural commodities will soon be operational. This will allow the agency to counter price manipulation and shortages.
Larry Lacson, NFA administrator said in a statement yesterday the release of the P9-billion palay procurement fund will increase the agency’s war chest to around P11 billion to achieve a procurement goal of between 6.4 million and 8.7 million bags of palay before yearend.
As of September 24, NFA has procured a total of 4 million bags.
NFA said it has been using left-over budget of P8.7 billion from 2023 to buy palay from farmers. For the first half of the year alone, NFA spent P5.3 billion for 3.5 million bags of palay.
Tiu Laurel, who chairs the NFA Council, said the agency has asked the Department of Budget and Management to release the funds for palay procurement “so we could support farmers and stabilize prices during the harvest this wet season.”
Tiu Laurel also assured farmers the NFA will buy palay between P21 and P23 per kilogram (kg) of palay.
Last June, the NFA Council raised the ceiling price for palay purchases to P30 per kg from P23 per kg while floor price was lifted to P17 per kg from P16 per kg.
DA added that by keeping the buying price at a minimum of P21 per kg, it could address reports that traders are buying palay in Nueva Ecija at P16 to P17 per kg.
Meanwhile, Tiu Laurel said the buffer fund for rice and other agriculture commodities has been approved in principle.
“We are looking for the funding source. There are several options… But for next year, we are almost sure t we can get that P5 billion buffer fund or fund to be able to use in case we have to trigger the price action,” Tiu Laurel told reporters on the sidelines of a forum hosted by the European Chamber of Commerce of the Philippines in Makati City yesterday.
Last April, the DA asked the Office of the President for such fund citing section 9 of the Price Act which allows the agency to have a buffer fund that can be used in procurement of rice and other prime agricultural commodities as well as for basic necessities.
Tiu Laurel recently signed the implementing rules and regulations of the Price Act’s section 9 which indicates that stockpiled commodities must be distributed at “reasonable prices” in areas where there is shortage of supply or “where there is a need to effect changes in the prevailing prices.”
