THE National Food Authority (NFA) said it may not be able to hit its palay procurement target of 100,000 metric tons (MT) this year, as the agency’s buying price remains uncompetitive against that being offered by traders.
NFA Grains Marketing Operations Head Rex C. Estoperez told the BusinessMirror that the agency is unlikely to hit its procurement target of 2 million bags (100,000 MT) this year. So far, the NFA has managed to purchase 76,901 bags, representing 4 percent of its target.
“[Palay procurement] is very minimal. [Hitting the target is] unlikely,” Estoperez said in an interview. “Based on our [palay procurement] target accomplishments, we achieved only 1 percent in August, 3 percent in July, 7 percent in June, 33 percent in May and 11 percent in April.”
He said the primary factor that prevented the NFA from procuring more palay was its support price of P17 per kilogram (kg), which is lower than the traders’ average buying price of P20 to P22 per kg.
Estoperez also welcomed the proposal of some lawmakers to add a P10-billion supplemental budget to the NFA to be used for its buffer stocking program.
The proposal, introduced by the Makabayan bloc in the House of Representatives, also seeks to hike the NFA’s buying price to P20 per kg so it could buy palay from farmers this harvest season.
“We always support any positive support for farmers,” Estoperez said.
Back to DA
In a Facebook post on Wednesday afternoon, Agriculture Secretary Emmanuel F. Piñol announced that President Duterte has issued an executive order (EO) transferring the NFA back to the Department of Agriculture (DA).
EO 62, signed by Duterte on September 17 and released only on September 19 according to Piñol, also authorized the return of the Philippine Coconut Authority and the Fertilizer and Pesticides Authority to the supervision of the DA.
“The executive order also reorganized the NFA Council, making the secretary of agriculture as chairman with the NFA Administrator as vice chairman,” Piñol said in his social-media post.
“Members of the NFA Council include the secretary of finance, the secretary of trade and industry, the director general of the National Economic and Development Authority, the social welfare secretary, the government of the Bangko Sentral ng Pilipinas, the president of Land Bank and a farmers’ sector representative appointed by the President,” he added.
The Development Bank of the Philippines was removed from the council, while a representative from the Office of the President was retained.