CITY OF MALOLOS — Now that the National Food Authority (NFA) has raised the palay buying price, farmer groups say it should be accompanied by a larger procurement fund for the grain agency to sustain its palay stockpiling program.

This comes after the NFA Council raised the buying price of clean and dry palay to P23 and P16.00-P19.00 per kilo of fresh palay on Monday.

Simeon Sioson, chairperson of the 4SM Multipurpose Cooperative in San Miguel, Bulacan, and an official of the Federation of Central Luzon Cooperatives, said that with the increase in the palay procurement price by the NFA, its budgetary requirement should also be increased so that it can sustain, if not increase, its palay stockpile target.

Sioson noted that if the NFA’s palay procurement budget is not raised, the volume of palay targeted for stockpiling will result in a lesser volume compared to its original target.

On the other hand, Raul Montemayor, national chairman of the Federation of Free Farmers, explained in a text message that the current P9 billion NFA budget can procure around 390,000 metric tons or 7.8 million bags of palay.

He pointed out that this is only equivalent to two percent of the country’s total palay production in a year and cited, “medyo maliit at kailangan dagdagan ang pondo ng NFA.”

Montemayor also noted that the NFA’s limited number of palay driers will restrict its capabilities to procure fresh palay from the farmers.

He further explained that if the buying price of palay from private traders is much higher compared to the government palay support price, there is a big possibility that farmers would sell their produce to private palay traders rather than to the grain agency.

Montemayor added that perhaps the NFA should introduce incentives in its palay procurement program, such as providing free fertilizers for every 50 cavans of palay delivered by the farmer to the NFA.

On the bright side, palay prices are expected to decrease as the peak palay harvest season begins, and farmers are assured that their produce will not be bought for less than P23 per kilo due to the P23 per kilo government support price for palay set by the NFA.

Photo: Mon Lazaro