NFA Enhances Support for Rice Farmers by Raising Palay Purchase Prices

The National Food Authority (NFA) has begun implementing a new pricing strategy for purchasing palay, the unprocessed grain from which rice is derived. This move aims to offer more competitive rates to local farmers, aligning closer with the current market prices offered by private traders.

Previously, the NFA’s purchase price for fresh palay ranged from PHP 16 to PHP 19 per kilo. As of this Monday, the price has been adjusted to PHP 17 to PHP 23 per kilo. For clean and dry palay, the rates have increased from PHP 19 to PHP 23 per kilo to PHP 23 to PHP 30 per kilo, making it a more appealing option for farmers.

This price adjustment comes in response to the competitive rates offered by traders, who were buying palay at prices between PHP 25 to PHP 27 per kilo, surpassing the NFA’s previous upper limit. The revised prices were approved by the NFA Council on April 11, after recognizing the need to enhance the agency’s procurement capabilities.

The NFA’s Office in Charge, Administrator Larry Lacson, highlighted the urgency of this adjustment, noting that it would not only help the agency build up its rice buffer stock—from a day’s supply to nine days—but also support the local farming community more robustly.

Despite the timing challenges, with the harvesting season nearing its end and traders having already secured significant stocks, the NFA remains optimistic. Lacson expressed hopes of substantial procurement in the coming weeks, aiming to maximize the short window available to stock up for national reserves.

This initiative is critical as it supports local farmers by providing them a reliable and potentially higher-paying buyer in the NFA, thereby reducing their dependency on fluctuating market prices and the risks associated with private traders. Moreover, this strategy aids in maintaining a stable rice supply within the country, safeguarding against price spikes and shortages.