NFA Steps Up Palay Buying Strategies

With the onset of the summer harvest season, the National Food Authority has made it easier for farmers to sell their palay to the agency and take advantage of the good buying price it offers.

NFA Administrator Jason Laureano Y. Aquino said that the food agency has simplified its procedures and payment scheme to encourage more farmers to sell their palay produce to NFA.

“As part of our aggressive buying strategies, we have already remitted the funding requirements to our field offices especially those in rice producing areas. Mobile procurement teams are deployed to closely coordinate with the local government units and farmers’ organizations to reach farmers even in far-flung areas. We want to protect our local farmers by giving them a ready market for their palay and at the same time offer them a better return on their investments,” Aquino said.

Based on the monitoring reports by NFA’s field offices, there are some areas in the country such as Aklan, Antique, Capiz, Iloilo and Negros Occidental in Western Visayas, Camarines Norte and Sorsogon in the Bicol Region, Bohol and Negros Oriental in Central Visayas, Occidental Mindoro, Palawan and Romblon in MIMAROPA, Compostela Valley and Davao City in Davao Region where palay buying price is lower than the government support price of P17 per kilogram.

The food agency buys palay at P17 /kg clean and dry with an additional P0.20/kg drying incentive and P0.20 – P0.50/kg delivery incentive. For farmers organizations (FOs) an additional P0.30/kg is given as cooperative development incentive fee (CDIF). NFA buying price ranges from P17.70-P18 /kg.

In selling their palay harvest to NFA, an individual farmer only needs to secure a passbook to prove that he is a legitimate farmer. The passbook is given free of charge. A farmer needs to submit a farmer’s information sheet with identification picture, and certification from the Barangay Captain, Municipal Agriculturist, Municipal Agrarian Officer or National Irrigation Administration where his farm is located. For farmers’ organizations, a master passbook must be secured by submitting their certificate of registration, assembly resolution and masterlist of members.

But even without a passbook, a farmer can still sell his produce to NFA up to 200 bags for the first time. In less risky areas, NFA will pay palay deliveries in cash on the same day.

NFA targets to buy 4,607,350 bags or 230,367 metric tons for this year to boost the government’s buffer stock and rice distribution requirements. A total of 94,373 bags were already procured as of 14 March 2017. (NFA)