The National Food Authority (NFA) said Thursday it secured the remaining P9-billion budget for 2024 palay procurement.
Agriculture Secretary Francisco Tiu Laurel Jr., who is also the concurrent NFA Council chairman, said the Department of Budget and Management (DBM) would release the funds in equal installments over the final three months of the year.
“The NFA will have enough funds to support rice farmers through the wet season, which is critical for their livelihoods during this challenging period,” he said.
NFA administrator Larry Lacson said the timely release of the budget would enable the agency to purchase 7.2 million 50-kilo bags of palay at a price of P25 per kilogram.
“This volume aligns well with the NFA’s wet season palay procurement target of 6.4 million to 8.7 million bags,” he said, indicating NFA’s commitment to meeting its procurement goals.
To balance farmer support with consumer needs, the NFA recently adjusted its buying price range for palay from P25 to P27 per kg., reflecting declining global rice prices.
Tiu Laurel assured farmers that they would still see a favorable return on their efforts despite the lower buying price.
The NFA Council raised the buying price of palay in June to P17 to P30 per kg., up from last year’s P16 to P23 per kg.
The council said the price adjustment was essential for helping the NFA compete with private traders and bolster the country’s rice buffer stock.
Lacson said the NFA’s recent decision to increase the selling price to the Department of Social Welfare and Development and other government agencies to P38 per kg., along with projected savings from the purchase of palay contained in farmers’ sacks, could lead to additional funds for palay procurement.
