Agriculture Secretary Francisco P. Tiu Laurel Jr. said the National Food Authority has secured the remaining P9 billion budget for palay procurement this year. The funding could help government support rice farmers during the wet season when palay prices typically decline due to increased harvests and limited drying facilities.
As the chairman of the NFA Council, Secretary Tiu Laurel confirmed that the Department of Budget and Management will release the budget in equal installments over the final three months of the year. “The NFA will have enough funds to support rice farmers through the wet season, which is critical for their livelihoods during this challenging period,” he stated.
NFA Administrator Larry Lacson said the timely release of the palay procurement budget will enable the agency to purchase approximately 7.2 million 50-kilo bags of palay at a price of P25 per kilo. “This volume aligns well with the NFA’s wet season palay procurement target of 6.4 million to 8.7 million bags,” added Lacson, indicating NFA’s commitment to meeting its procurement goals.
Recently, the NFA has adjusted its buying price range for palay, lowering from the previous P25 to P27 per kilo. This change reflects the declining global prices of rice and aims to reduce cost of the food staple for Filipino consumers.
“We recognize the need to balance farmer support with consumer needs, and this adjustment is a step toward achieving that goal,” the DA chief said.
Despite the lower buying price, Secretary Tiu Laurel assured that farmers would still see a favorable return on their efforts. “Even at this adjusted price, farmers will continue to benefit from their hard work, especially given the improved price range we implemented earlier this year,” he noted.
In June, the NFA Council had raised the buying price of palay to a range of P17 to P30 per kilo, up from last year’s P16 to P23 per kilo. This price adjustment was essential for helping the NFA compete with private traders and bolstering the country’s rice buffer stock.
Administrator Lacson pointed out that the NFA’s recent decision to increase the selling price to the Department of Social Welfare and Development and other government agencies to P38 per kilo, along with the projected savings from the purchase of palay contained in farmers’ sacks, could lead to additional funds for palay procurement.
“These measures could save hundreds of millions of pesos, enabling us to purchase more grains from rice farmers,” Lacson said.
As the NFA moves forward with its procurement plans, it remains focused on supporting the agricultural sector while ensuring food security for the nation. The availability of the P9 billion budget will play a pivotal role in achieving these objectives during a critical time for rice production. ###
