NFA to buy 3.21-M palay bags this summer

ABS-CBN News

Posted at Feb 23 2009 04:09 PM | Updated as of Feb 24 2009 12:09 AM

The National Food Authority (NFA) is targetting to buy 3.21 million bags of palay from March to May.

NFA administrator Jessup Navarro said in a statement Monday that the agency is confident of meeting its target to buy palay for the coming harvest season:

  • 939,200 bags of palay in March,
  • 1.1 million bags during the peak harvest in April
  • 889,800 bags in May.

Another 232,300 bags is expected to be bought in June from an extended summer harvest in some regions.

Navarro said that farmers find it more profitable to sell their palay to the NFA. Aside from the support price P17 per kilogram, the NFA
increased its incentive for cooperative development to P0.30 per kilogram while the drying and transport incentives are now at P0.20 per kilogram.

"This translates to P17.70 per kilogram as the effective price of NFA for clean and dry palay," Navarro said.

In January, NFA bought 798,519 bags of palay, slightly more than its target of 796,900 bags.

The NFA set this year's palay procurement target at 14 million bags. In 2008, it procured 13.2 million bags.