October 18, 2024 | 12:00am
MANILA, Philippines — The Department of Budget and Management (DBM) has released P9 billion for the palay procurement of the National Food Authority (NFA) this year, Agriculture Secretary Francisco Tiu Laurel Jr. said yesterday.
“The NFA will have enough funds to support rice farmers through the wet season, which is critical for their livelihoods during this challenging period,” Tiu Laurel said.
He said the budget will boost the government support for farmers during the wet season when palay prices typically decline due to increased harvests and limited drying facilities.
Tiu Laurel, who chairs the NFA Council, added that the DBM will release the budget in equal installments over the final three months of the year.
For his part, NFA administrator Larry Lacson said the timely release of the palay procurement funding will allow the purchase of at least 7.2 million bags of palay for P25 per kilo.
“This volume aligns well with the NFA’s wet season palay procurement target of 6.4 million to 8.7 million bags,” Lacson said.
The NFA has adjusted its buying price range for palay, lowering it from the previous P25 to P27 per kilo. The adjustment, which reflects the declining global prices of rice, aims to reduce the cost of the staple for Filipino consumers.
“We recognize the need to balance farmer support with consumer needs, and this adjustment is a step toward achieving that goal,” Tiu Laurel added.
He assured industry players that despite the lower buying price, farmers would still have a favorable return on their efforts.
“Even at this adjusted price, farmers will continue to benefit from their hard work, especially given the improved price range we implemented earlier this year,” he pointed out.
In June, the NFA Council raised the buying price of palay to a range of P17 to P30 per kilo, up from last year’s P16 to P23 per kilo.
The price adjustment was meant to help the NFA compete with private traders as well as bolster the country’s rice buffer stock.
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