The National Food Authority (NFA) on Tuesday announced it will soon procure storm-damaged palay (unhusked rice) in typhoon-hit areas to help Filipino farmers recover.
In a press conference, NFA Administrator Larry Lacson assured farmers that the agency’s buying price will not drop to a single-digit level, unlike the reported rates of traders in some areas of the country amid heavy rains during the peak harvest season.
The intervention will be implemented under the forthcoming executive order on the procurement of palay, earlier announced by Agriculture Secretary Francisco Tiu Laurel Jr.
“That [prices dropping to single-digit] will not happen. The national government, or anything in particular, hindi gagawin ‘yun (will not do that) because we would really like to help our farmers who are in distress right now,” he said.
“Napakahirap na lang ang sitwasyon nila (Their situation is already very difficult). We will not buy at a single-digit price per kilo, definitely not.”
Lacson said the NFA’s price will be around PHP2 to PHP3 per kilogram lower than the flexible Price Range Scheme (PRICERS), currently set at PHP23 per kg for dry palay and PHP17 per kg for wet palay.
On Monday, Tiu Laurel reported that traders’ buying prices of palay plunged back to PHP8 per kilogram after reaching about PHP14 per kg in some areas, with sporadic reports of PHP6 per kg as farmers struggle to dry their output amid the rains.
“Alam namin ang production cost. So, hindi kami magiging agent na malulugi yung ating mga magsasaka (We know the production cost. So, we will not be an agent causing losses for our farmers),” Lacson said.
He also expressed optimism that the NFA’s buying price will help pull up traders’ offers for storm-damaged palay in affected areas.
“Makakuha po ako ng (If I secure) 15 percent of the market or 10 percent of the market, it will definitely affect the price… So hopefully, umayon lahat at mapaangat natin ang (everything will follow and lift the prices in the) market,” Lacson said.
The NFA, however, will prioritize the procurement of dry storm-damaged palay for faster disposal.
Meanwhile, Tiu Laurel earlier said the government will soon set a floor price for palay to protect rice producers from plunging farmgate prices.
Lacson underscored the need for the immediate issuance of the necessary orders.
“It’s not within the year. It’s the soonest possible time. Kasi the problem is now, bagsak ang presyo ng palay. Kakatapos lang ng bagyo. So, the sooner the better para sa ating magsasaka (palay prices are dropping. The storm has just passed. So, the sooner the better for our farmers),” he said.
Proposed fund
Lacson said the proposed budget for the emergency procurement of palay is about PHP3 billion.
The fund also intends to cover logistics, operational expenses, and rental fees for additional NFA warehouses.
The NFA chief said they have yet to determine how many warehouse facilities will be rented to accommodate larger palay volumes.
“We will have to assess kung marami bang private warehouses na pwedeng marentahan sa ngayon (how many private warehouses can be rented for now),” Lacson said.
As of Tuesday, the NFA’s national rice stock inventory stands at 446,000 metric tons (MT), equivalent to 8.9 million bags of milled rice, or good for 12 days. (PNA)