NFA intensifies palay procurement amid proposed floor price

The National Food Authority (NFA) is intensifying its palay procurement nationwide as the government studies a proposed floor price for unmilled rice to protect farmers and stabilize the market.

Newly reopened warehouses in Bulacan, Zamboanga, Cagayan Valley, and other rice-producing areas are now operational.

The warehouse in Maytika, Malolos, Bulacan, with a 70,000-bag capacity, has been reopened despite its renovation not being 100 percent complete.

The NFA's enhanced procurement is aimed at absorbing more harvests, stabilizing farmer incomes, and building up the agency's buffer stock.

The NFA is seeking a doubled budget of P18 billion for palay procurement and amendments to the Rice Tariffication Law, with support from the Office of the President.

This increased funding would sustain the government's P20-per-kilo rice program and enable the NFA to better influence farmgate palay prices.

The NFA currently buys palay between P18 and P24 per kilo, a price some traders had undercut by offering farmers as low as P11.50 per kilo when procurement operations were limited.