NFA Council to Review Palay Purchase Prices for Farmer Competitiveness

The National Food Authority (NFA) Council plans to convene on April 11, 2024, to discuss potential adjustments to palay buying prices, aiming to offer more competitive rates to Filipino farmers. This move comes in response to the disparities between the NFA’s current purchase rates and the higher national farmgate prices.

In 2023, the NFA raised its buying price for dry palay to P23 per kilo and for wet palay to P19 per kilo, yet these figures still lag behind the national average farmgate price of P25.21 per kilo as reported in February 2024. The upcoming meeting will explore strategies to better align the NFA’s purchasing prices with market rates to support local agricultural producers.

Despite logistical challenges, including the temporary closure of several NFA warehouses under investigation, the Department of Agriculture assures that the NFA’s operations remain robust, with alternative storage solutions in place to facilitate continuous palay procurement. The council’s deliberations are critical for enhancing the NFA’s role in stabilizing rice prices and supporting the nation’s agricultural sector.