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 funds help the government support rice farmers during the wet season when palay prices typically decline due to increased harvests and limited drying facilities. As 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 only 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 adjusted its buying price range for palay, at the low end of an earlier target range of P25 to P27 per kilo.
The change reflects the declining global price of rice and in keeping with the goal to cut the cost of the 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 will still see a favorable return for the crop. “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 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.
The price adjustment was essential in helping the NFA compete with private traders and bolstering the country’s rice buffer stock.
Administrator Lacson said the NFA decision to increase the price of rice sold 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, lead to more 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 of rice production.
