NFA Maintains P30/kilo Buying Price for Palay to Support Farmers

The National Food Authority (NFA) has announced that it will maintain its buying price for palay at 30 pesos per kilo, aiming to ensure that local farmers can maximize their earnings.

Key Points

NFA Administrator Larry Lacson stated, “Unless revised by the NFA Council, our ceiling price for clean and dry palay will stay at P30 a kilo.” This decision follows an increase in mid-April, where the NFA Council raised the buying price range from P16-P23 to P17-P30 per kilo to stay competitive with private traders.

Lacson, along with other NFA Council members, visited Davao Oriental to engage in a dialogue with farmers and NFA employees and inspect facilities and rice inventory.

Supporting Farmers

During the dialogue, farmers reported higher agricultural productivity and increased income, thanks to governmental support like machinery subsidies, seed subsidies, and reduced labor costs due to mechanization. By the end of the first half of the year, the NFA had procured a record 3.5 million tons of palay.

Future Initiatives

Acknowledging logistical challenges faced by farmers’ cooperatives, Lacson announced plans to procure vehicles for transporting stocks directly from farms to warehouses as part of the agency’s proposed 2025 budget. Additionally, the NFA is working on a modernization plan that includes acquiring post-harvest facilities like dryers and rice mills to enhance processing capacity and efficiency.

NFA’s Commitment

The NFA is mandated by the Rice Tariffication Law to maintain a national buffer stock of rice to ensure food security in emergencies. The agency will continue collaborating closely with farmers and industry stakeholders to address challenges and improve agricultural practices and livelihoods across the country.