‘More funds needed for NFA’s stockpile’

MALOLOS, Philippines — Now that the National Food Authority (NFA)’s palay-buying price has been raised, the agency should be provided a bigger procurement fund for its stockpiling program, according to farmer groups.

An official of the Federation of Central Luzon Cooperatives said that with the increase in the NFA’s palay procurement price, the agency’s budgetary requirement should also be raised so that it can sustain if not increase its palay stockpile target.

Simeon Sioson, chairman of the 4SM Multipurpose Cooperative in San Miguel, Bulacan, pointed out that if the NFA’s palay procurement budget is not raised, then the volume of palay that is targeted for its stockpiling will result in 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 NFA’s current P9-billion budget could procure around 390,000 metric tons or 7.8 million bags of palay.

Montemayor added this is only equivalent to two percent of the country’s total production of palay in a year, which is “a bit small and needs more funding by the NFA.”

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

At present, the NFA’s scarce number of palay driers will limit its capabilities in procuring fresh palay from farmers, according to Montemayor.

He also explained that if the buying price of palay traders is much higher compared to the government’s palay support price, there is a big possibility that farmers would sell their produce to private palay traders rather than to the NFA.

He added that perhaps the NFA should add incentives in its palay procurement program, like free fertilizers