NFA seeks P9B to purchase up to 8.7M bags of palay

The National Food Authority (NFA) is requesting P9 billion in funding to support its palay procurement activities this year.

Agriculture Secretary Francisco Tiu Laurel Jr. stated that the funds are needed to help farmers and stabilize prices during the wet season harvest, with the NFA aiming to purchase up to 8.7 million bags of palay by year-end.

As of September 25, 2024, the NFA has already bought 4 million bags of palay using a leftover budget of P8.7 billion from 2023 and aims to procure between 6.4 million and 8.7 million bags by year-end.

The agency will purchase palay at a minimum price of P21 per kilo, making it more attractive for farmers compared to private traders who were reportedly buying rice at P16-P17 per kilo in Nueva Ecija.

NFA’s procurement efforts are also influenced by the Rice Tariffication Law of 2019, which restricts the agency to purchasing domestically harvested rice to build up its emergency reserves.