The National Food Authority continued to exceed its target volume of ‘palay’ bought from farmers even as farm-gate prices have crept up farther above its mandated buying price.
“We have bought some 2.29 million bags of palay so far this year, which is still above our goal,” NFA Administrator Renan B. Dalisay said in an interview.
The figure is equivalent to some 116,640 tons of palay which, at P17 per kilo, translates to some P1.95 billion.
The NFA, which is mandated to ensure stable supply and prices for the staple grain, buys at a basic rate of P17.
According to the agency’s monthly performance report, the NFA is supposed to buy from farmers 64,796 tons of palay in the eight months ending August.
NFA data show that the agency was able to buy 96,114 tons, exceeding the target by almost half.
As of end-August, the farm-gate prices across the nation averaged at P18.42 per kilo of palay.
The NFA earlier this year said it had embarked on a “massive” domestic procurement program, particularly when the average nationwide farm-gate price dropped to P17.85 a kilo. Back then, prices in some areas fell to as low as P14 per kilo.