Philippines' NFA Raises Palay Buying Price to P30 per Kilo
Key Takeaways
- •The NFA's buying price for clean and dry palay will rise to P30 per kilogram, up P9 from the P21 rate set in July.
- •About 80% of NFA branches currently purchase clean and dry palay at P28 to P30 per kilogram, while fresh palay is bought at roughly P25 to P26 per kilogram.
- •The procurement ceiling was raised to 500 bags per season for farmers cultivating five hectares, with the limit based on a province's average yield multiplied by the farmer's cultivated area.
- •The agency is targeting 790,000 metric tons of palay procurement this year and next, supported by 150 mobile procurement trucks due for delivery by December or early 2027.
- •Agriculture Secretary Francisco P. Tiu Laurel, Jr. said an additional P10 billion is available if further palay purchases are needed.
The National Food Authority (NFA) of the Philippines said its buying price will rise to P30 per kilogram for clean and dry palay, or unmilled rice. The agency buys palay directly from farmers to build the government's rice buffer stock.
NFA Administrator Larry R. Lacson said 80% of the agency's branches now purchase clean and dry palay at P28 to P30 per kilogram. Fresh palay, he added, will fetch around P25 to P26 per kilogram.
In July, the buying price was set at P21 per kilogram, making the new rate a P9-per-kilogram increase.
Alongside the price adjustment, the NFA raised the ceiling on palay procurement to 500 bags per season for farmers tilling five hectares, expanding how much individual growers can sell to the agency. The new procurement limit is based on the average palay yield in a province multiplied by the farmer's cultivated area.
The agency is targeting 790,000 metric tons for procurement this year and the next.
To bring buying operations closer to remote production areas and farming communities, the NFA has obtained 150 mobile procurement trucks, with deliveries expected by December or early 2027, as the agency pursues its 790,000-metric-ton procurement target.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. has said the NFA has an additional P10 billion available for further palay purchases if needed. How quickly the mobile trucks deploy and whether that extra funding is tapped are the near-term points to watch.
— Maria Mikaela H. Tormon, BusinessWorld Online (original report)
