ILOILO City – The National Food Authority expects an influx of farmers selling their palay to the agency.
The agency launched its P3-per-kilo buffer stocking incentive (BSI) in Western Visayas – in Iloilo – on Friday.
NFA officer-in-charge Tomas R. Escarez urged provincial offices to make sure their dryers are ready and the warehouses are clean.
Under the BSI, the NFA will give an additional P3 per kilo on top of the P17-per-kilo buying price.
The agency also gives incentives for drying at P.20 per kilo, delivery at P.20 per kilo, and the Cooperative Development Incentive Fund of P.30 per kilo.
“Iloilo is the second area to launch the BSI. It was first launched in Mindoro,” said Escarez.
The P17 buying price is only for clean and dry palay. As the moisture content goes higher and when there are impurities, the price will start to go down, he explained.
The P3 is expected to help farmers cope with the high cost of production and for the NFA to increase its buffer stocking in case the prices of rice rise and when there is a calamity, among others.
The NFA will not import as long as there are local supplies that can be purchased, the agency official added.
Moreover, to entice more rice farmers to sell their produce to the NFA, he said they plan to provide noncash incentives, such as postharvest machineries. (PNA)
