BACOLOD City – The National Food Authority (NFA) in Negros Occidental has started procuring rice from farmers and associations at a higher price.
The NFA launched its new procurement program in the province last Oct. 29, setting the buying price of palay at P20.70 per kilogram from the previous P17.70 per kilogram.
NFA-Negros Occidental provincial manager Frisco Canoy said on Sunday that they have so far procured 704 bags of palay (unhusked rice) from local farmers and associations that were the first to avail of the P3 per kilogram incentive, for buffer stocking.
“As we continue to implement the new procurement program, harvests among farms in the southern portion of the province are already about to end thus, palay for sale is limited,” he said.
In the north, however, harvest is still at its peak, Canoy added.
The NFA procured the 704 bags, or about 35,000 kilograms, from farmers and associations in northern Negros through its buying station in San Carlos City.
Under the new procurement initiative, the NFA provides an additional P3 per kilogram Buffer Stocking Incentive (BSI) aside from other existing incentives of added P0.70, and basic buying price of palay at P17 per kilogram.
The 70 centavo per kilogram incentive given to farmers is comprised of a 20-centavo drying incentive, another 20 centavo delivery incentive, and a 30-centavo cooperative development incentive fee for the associations they belong to.
The NFA’s new procurement program for palay was launched in response to the clamor of farmers to increase the P17 per kilogram buying price, which was implemented for the past 10 years.
With the average production cost in the Philippines pegged at P12 per kilogram, higher than P8 per kilogram in other countries like Vietnam and Thailand, the P20.70 per kilogram buying price and incentive will provide local farmers an additional income of at least P8 per kilogram.
In Negros Occidental, the three NFA buying stations are located in its warehouses in San Carlos City, Ilog town and Bacolod City. (PNA)
