The Department of Agriculture (DA) on Wednesday said the approved additional PHP10 billion is crucial for the rehabilitation of the National Food Authority (NFA) warehouses and for buying palay (unhusked rice).
“We are also happy to note na mayroong additional PHP10 billion ang National Food Authority (that the National Food Authority has additional PHP10 billion),” said DA spokesperson Assistant Secretary Arnel de Mesa in an interview.
He said PHP5 billion of the fund will be allocated for the procurement of additional dryers and millers.
“About PHP1.5 billion doon, gagamitin para i-rehabilitate iyong mga (of that will be used to rehabilitate) existing warehouses. And then PHP3.5 billion para gumawa ng mga bagong (for the construction of new) warehouses,” De Mesa said.
De Mesa said the additional budget is also crucial for the NFA’s buying of local palay from farmers for this year’s increased target for national rice buffer stock.
The NFA’s target procurement for the national rice buffer stock rose to 15 days, equivalent to 880,000 metric tons under the amended Rice Tariffication Law (RTL).
This is higher than the previous national rice buffer stock of nine days.
To date, the NFA has a PHP9 billion buying budget under the 2025 General Appropriations Act (GAA), on top of the PHP5 billion fund carried over from last year, totaling PHP14 billion for 2025.
Higher buying price
De Mesa, meanwhile, reported an increase in the buying price of NFA from local farmers, which is now set at PHP24 per kilogram of clean and dry palay.
For his part, NFA Administrator Larry Lacson urged farmers to dry their harvest before selling it to the agency to maximize profit.
“That’s a net additional income of PHP4 per kilo. For example, a farmer harvesting five tons per hectare could net an extra PHP20,000,” he said in a separate statement.
“This week, we’ve raised our buying price to PHP18 per kilo for fresh palay and PHP24 per kilo for clean and dry palay,” he added.
Lacson noted that rice millers typically pay around PHP20 to PHP22 for clean and dry palay; while fresh (wet palay) is priced at PHP5/kg.
In 2024, the NFA implemented a flexible buying scheme to protect local farmers from unscrupulous traders who want to take advantage of them.
The buying price per kilogram ranges from PHP17 to PHP23 for fresh; and PHP23 to PHP30 for clean and dry palay. (PNA)