Gov’t told: Don’t haggle for cheaper palay price

Farmer groups and agri-business operators called on the National Food Authority’s governing body, the NFA Council, to raise the support price for palay to enable the agency to buy aggressively as harvest peaks.

According to the Samahang Industriya ng Agrikultura (Sinag), the NFA Council should bring up the government’s buying price to P20 a kilo from the present P17 per kilo.

The NFA buys palay at P17 per kilo with additional incentives of 30 centavos for the Cooperative Development Incentive Fee, 20 centavos for the drying fee, and a delivery fee of between 20 centavos and 50 centavos—bringing the total to P17.70-P18 per kilo.

Data from the Philippine Statistics Authority (PSA) showed that as of the second week of April, palay was fetching an average of P18.71 a kilo at the farm gate.

“The council members should work together to raise the support price instead of bickering about the mode of rice importation,” Sinag chair Rosendo So said.

The NFA Council has been divided over whether to allow the arrival of more private-sector shipments or order fresh cargos through the NFA itself.

So told the Inquirer rice traders had been pressured to buy from farmers when President Duterte earlier this month ordered the NFA to buy palay from the local industry before considering any importation of milled rice.

“But the buying of palay slowed down after threats were made about a new round of warehouse inspections,” So said.

He was referring to the proposal of Agriculture Secretary Emmanuel F. Piñol to form an inter-agency task group to run against hoarders who are trying to create an artificial shortage.

“Palay was fetching P15 per kilo in December and January but the NFA made no purchases,” the Sinag chair said. “Now the NFA complains that the price is too high.”

NFA administrator Jason Laureano Y. Aquino earlier said the NFA’s target for palay procurement this year was about 4.6 million cavans or 230,367 metric tons.

Aquino said the NFA intended to buy 79,240 tons of palay in the first half of 2017 alone and as of the end of March, the agency has bought 134,355 cavans or 21 percent of the target for the period.