NFA sets palay buying price at P23-P25 per kilo

THE National Food Authority (NFA) said it set the buying price of palay (unmilled rice) at between P23 and P25 per kilogram for dry and clean grain.

“Our pricing mechanism is a range, so the NFA will implement (a buying price) of about P23 to P25 per kilogram,” NFA acting Administrator Larry R. Lacson told reporters on Tuesday.

Earlier, the NFA Council approved a palay buying price between P23 to P30 per kilo for dry and clean palay and P17 to P23 per kilo for fresh palay.

“It’s not really an abrupt going down in price… In about eight to 10 days the buying price will go down,” he added.

The NFA is tasked with purchasing domestically grown rice and hold it in reserve in the event of shortages or calamities.

“At P23 per kilo, the farmer is still able to profit… So we are managing that we don’t forget our farmers,” Agriculture Secretary Francisco P. Tiu Laurel, Jr. told reporters.

The NFA earlier increased the buying price for palay to compete with prices offered by traders.

“World prices have gone down a bit and the price of rice in the market will not fall if the buying price of traders and the government remains high,” Mr. Laurel said.

Mr. Lacson added that the new pricing is part of the government’s effort to tame the price of palay, possibly leading to a fall in prices charged by millers.

“We have to tame the price of palay to pave the way for cheaper rice,” he said.

He added that the NFA will be able to procure more rice for farmers at the lowered price.

The NFA hopes to purchase up to 8.7 million bags of palay before the end of the year, equivalent to up to 435,000 metric tons (MT) of palay.

In the first half, the NFA paid P5.3 billion to purchase 175,000 MT of palay, equivalent to 3.5 million bags. — Adrian H. Halili