NFA stocks more than double in H1

August 15, 2024 | 12:00am

MANILA, Philippines — The National Food Authority (NFA) more than doubled its rice stocks at the end of first half, driven by more purchases from local farmers on the back of a higher buying price.

The state-run grains agency reported that it held 2.94 million 50-kilogram bags of rice or about 147,199 metric tons at the end of June, which was 142 percent over last year’s 60,820 MT inventory.

At the end of June, the NFA had 4.32 million 50-kilogram bags of palay or about 216,000 MT.

The NFA noted that it procured 3.43 million 50-kilogram bags of palay or about 171,608 MT in the second quarter, exceeding its target of 101,010 MT.

Furthermore, the volume procured was 86.7 percent higher than the 12,899.85 MT of palay bought in the same quarter of last year, according to the NFA.

“The procurement performance exceeded its target due to the ongoing implementation of the PRICERS program, which has effectively encouraged more farmers to deliver and sell their palay harvests, particularly in areas with sporadic harvests,” it said in its recent accomplishment report.

The program was implemented by the state agency in April that allows it to buy palay on a price range basis depending on the prevailing market price in a given province to be able to compete with private traders.

Under the program, the NFA buys clean and dry palay between P23 and P30 per kilogram while it purchases fresh or wet palay from P17 to P23 per kilo, depending on the market conditions in a given area.

The NFA posted the highest palay procurement during the quarter in May with a total volume purchase of 2.24 million bags, followed by April with 833,521 bags and June with 355,910 bags.

Meanwhile, the state agency said it distributed 130,527 bags of rice or about 6,256.34 MT as part of its buffer stocking mandate.

“Sales of NFA rice was limited only to disaster/calamity response of local government units and other government relief agencies which did not require substantial volume for the government’s relief intervention,” it said.