The National Food Authority (NFA) said it continues to buy rice from planters at P19 per kilogram in its bid to beef up its buffer stocks.
The NFA also said its branches nationwide are always open to accommodate farmers who want to sell their unmilled rice to the agency. The food agency is also offering its drying facilities to local planters.
While Republic Act (RA) 11203 or the Rice Tariffication Law removed the marketing functions of the NFA, it is still mandated to maintain a buffer stock for emergencies.
According to the NFA, local government units have been assisting the agency in procuring rice supplies for its buffer stock.
In Tanuan, Leyte, rice farmers who will sell their palay to the NFA will get an additional P2/kg on top of the agency’s current buying price of P19/kg.
The local government has set aside P2 million for the implementation of the Palay Marketing Assistance Program for Legislators and Local Government Units (PALLGU).
The local government and the NFA have signed a memorandum of agreement to raise the buying price of palay.
“The program seeks to provide opportunities for our rice farmers to maximize their income. This is an opportunity for us to serve our local farmers,” an official said.
NFA Eastern Visayas Regional Manager Jasmin Lintag said in a statement that under the program, the local government enters into a marketing agreement with NFA where they provide a premium amount to be added to the existing government-buying price of palay.
In the case of Tanauan town, the local government will be adding P2 to the existing palay buying price currently pegged at P19/kg.
“We are pleased with the support extended by the local government in NFA’s bid to beef up our buffer stocks to be sourced solely from local farmers,” Lintag said.
The initiative is expected to benefit 1,000 local rice farmers in Tanauan, a second class town in Leyte province with a population of 57,455 people in 54 barangays (villages).
The Philippines imported a record high of 3.826 million metric tons (MMT) of rice last year, according to data from the Bureau of Plant Industry (BPI).
BPI data showed the Philippines overshot the projected 3.8 MMT import volume cited by the United States Department of Agriculture-Foreign Agricultural Service in Manila.
International market watchers and local experts pointed out that the country imported a lot of rice this year to compensate for the reduction in domestic palay output due to reduced fertilizer application.
High-ranking officials of the agriculture department have described the higher than usual import volume in 2022 as a “blessing in disguise” as this will ensure the country’s staple supply and avert an increase in the prices of the commodity.