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Advocates Philippines
NFA Implements Measures To Boost Buffer Stock Amid Rising Palay Prices
Photo credit: NFA
In response to soaring palay prices exceeding the permissible limits, the National Food Authority (NFA) is set to roll out a "contract growing" scheme, compelling farmers receiving Department of Agriculture assistance to sell a portion of their produce to the NFA. The move aims to ensure stable buffer stock levels while maintaining fair prices for farmers.
To address the challenge of wet season sales, the NFA is expanding its mechanical drying capacity and coordinating efforts with the Department of Agriculture National Rice Program and the National Irrigation Administration. Agriculture Secretary Francisco Tiu-Laurel Jr. secured significant funding, paving the way for a P93-billion modernization initiative, including mechanical dryers, silo storage, modern rice mills, and climate-controlled warehouses.
President Ferdinand Marcos Jr.'s administration expresses confidence in the NFA's leadership, with at least P6.6 billion allocated for 2024, and an additional P5 billion pending if budget obligations are met promptly. The ambitious modernization plan targets an increased capacity of 1.2 million metric tons of palay, equivalent to a 15-day strategic rice reserve.
The modernization efforts not only enhance the NFA's capacity but also extend the shelf life of rice and corn from nine months to a minimum of 18 months. This strategic move is aimed at avoiding distress selling of aging stocks and ensuring quality for consumers.
NFA, mandated to keep and dispose of stocks in consumable condition, maintains the selling price at P25/kg. To minimize distress selling costs, the NFA Council permits the sale of aging stocks up to 10% lower than the mandated price. The NFA management has responsibly disposed of stocks to government accounts, emphasizing adherence to guidelines and safeguards.
As the NFA progresses towards modernization, distress selling can be further minimized, offering more time for the optimal disposition of stocks for various purposes, including calamity relief.
The current NFA management, navigating the challenges of fluctuating prices and shelf-life concerns, is actively addressing the agricultural landscape's demands while ensuring the nation's food security.
To address the challenge of wet season sales, the NFA is expanding its mechanical drying capacity and coordinating efforts with the Department of Agriculture National Rice Program and the National Irrigation Administration. Agriculture Secretary Francisco Tiu-Laurel Jr. secured significant funding, paving the way for a P93-billion modernization initiative, including mechanical dryers, silo storage, modern rice mills, and climate-controlled warehouses.
President Ferdinand Marcos Jr.'s administration expresses confidence in the NFA's leadership, with at least P6.6 billion allocated for 2024, and an additional P5 billion pending if budget obligations are met promptly. The ambitious modernization plan targets an increased capacity of 1.2 million metric tons of palay, equivalent to a 15-day strategic rice reserve.
The modernization efforts not only enhance the NFA's capacity but also extend the shelf life of rice and corn from nine months to a minimum of 18 months. This strategic move is aimed at avoiding distress selling of aging stocks and ensuring quality for consumers.
NFA, mandated to keep and dispose of stocks in consumable condition, maintains the selling price at P25/kg. To minimize distress selling costs, the NFA Council permits the sale of aging stocks up to 10% lower than the mandated price. The NFA management has responsibly disposed of stocks to government accounts, emphasizing adherence to guidelines and safeguards.
As the NFA progresses towards modernization, distress selling can be further minimized, offering more time for the optimal disposition of stocks for various purposes, including calamity relief.
The current NFA management, navigating the challenges of fluctuating prices and shelf-life concerns, is actively addressing the agricultural landscape's demands while ensuring the nation's food security.
Feb 28, 2024
