BY MARY JOY CAVAÑAS
ILOILO – The National Food Authority (NFA) announced a new, higher buying price for palay in Western Visayas.
Diane Silva, NFA regional director, said an additional P3 to P4 buffer stocking incentive would be applied, allowing the food security agency to procure a kilogram of wet palay at rates of P16 to P19, and P19 to P23 for clean and dry palay, starting from Sept. 19.
“In just September, many have delivered to us, probably around 50,000 bags of palay. A significant portion of this, perhaps over 20,000 bags, was due to the higher prices,” Silva said during a DYFM Bombo Radyo Iloilo interview.
She believes the increased buying price is motivating local farmers.
“The fact that they’re now delivering to the NFA indicates they see an advantage in NFA’s pricing,” said Silva.
NFA is also observing the variance in buying prices offered by private traders.
“In Iloilo, the price is around P19 per kilogram, whereas in Capiz and Negros, the average buying price is sometimes above P20. As we approach the main harvest in October, these prices will likely fluctuate,” said Silva.
To further support local farmers, several Iloilo municipalities are offering premiums over the NFA buying price. For instance, Pototan and Estancia towns add P2, while Passi City and Guimaras Province add an extra P1.
Silva clarified that there’s no minimum volume of palay required for farmers to engage with the NFA.
“Even if a farmer walks in with just one sack to deliver, our buying stations will accept it. We even tell them that even half a sack is acceptable, especially for farm workers,” she explained.
The aim of the new buying price, according to the regional director, is to ensure ample buffer stocks. The agency is considering using these stocks as an alternative to importing or distributing financial aid during supply shortages.
Silva also offered a reminder to local farmers about using the agency’s mechanical driers.
“We do have them, but they can’t handle very large volumes. That’s why we always advise farmers to coordinate with our branch offices first for scheduling. The capacity of our mechanical driers can’t accommodate large quantities. And the price difference is quite significant.”
NFA Region 6 confirms they have sufficient funds to assist local farmers in the region.
In a recent update, NFA’s central office reported that funds earmarked for the buffer stocking incentive have been dispatched to regional offices.
“We’ve instructed our regions and branches to start purchasing clean and dried palay at P23/kg nationwide. Procurement guidelines have been disseminated, and funds have been allocated to our buying stations,” a portion of the statement read.
“As the main harvest season begins, many rice millers are aggressively buying palay at P24 to P25/kg, even above the NFA price. This is acceptable since they have immediate needs to cater to their clientele with milled rice, while the NFA intends to use the palay as a buffer stock later on,” the statement continued.
The central office anticipates this approach will drive up palay prices as millers adopt this benchmark for the current harvest season.
“When the peak harvest commences, farmers will lean more on the NFA to stabilize palay prices. The P23 per kilo rate will aid in ensuring stable palay prices, encouraging planting intentions for the subsequent crop to remain favorable. With higher income, farmers can invest more in the next crop, which is crucial given the heightened risks from potential El Niño effects,” they concluded. (With a report from ABS-CBN News)/PN
