NFA needs P3 billion for emergency palay procurement program

The National Food Authority (NFA) requires P3 billion to initiate an emergency palay procurement program aimed at assisting farmers affected by recent storms and declining prices.

NFA Administrator Larry Lacson assured farmers that the floor price for palay procurement will not be reduced to single-digit levels, despite reports of farmgate rates plunging as low as P6 per kilo.

The NFA normally buys wet unhusked rice at P17 to P23 per kilo, while clean and dry palay fetches P23 per kilo.

Storm-damaged palay will be bought at P2 to P3 less per kilo than the regular price, depending on the extent of the damage.

The allocated funds will be used for purchasing palay, warehouse rentals, and logistical expenses.

The NFA is awaiting an executive order from the Palace to authorize the emergency procurement and secure the necessary funding.

The agency will need to secure additional storage by renting private warehouses, as the exact volume of palay to be procured and the required warehousing capacity are still being determined.