Government to spend P53 billion to buy palay from farmers

MANILA, Philippines — The government targets to spend P53 billion to buy palay (unhusked rice) from local farmers this year.

Agriculture Secretary William Dar said an initial P53 billion from the public sector, composed of the National Food Authority (NFA), Department of Social Welfare and Development (DSWD), local government units and farmers’ federations, would be utilized to buy more palay at favorable prices this 2020.

Through the NFA, the Department of Agriculture (DA) intends to buy more palay starting this dry season through its support price of P19 per kilogram.

NFA’s buying price is much higher than the prevailing price of palay which is currently at P15.62 per kilo and continues to decline due to the opening up of the rice market to cheap imports.

Dar said he has instructed NFA administrator Judy Dansal to go all-out and make full use of its P7 billion annual procurement budget and roll it over by at least twice or up to P14 billion to benefit more farmers.

“We expect a more vibrant palay-buying and rice trading activities this year as the DSWD will distribute P600-worth of NFA rice instead of cash every month to each of the beneficiary of its Pantawid Pamilyang Pilipino Program,” Dar said.

“The DSWD intervention is worth P31 billion annually, which is a substantial amount that could help prop up palay prices,” he said.

Further, major provincial  governments and big farmers’ federations will also continue to engage in palay buying and rice marketing operations.

Just like last year, the DA is expecting about 30 major rice-producing provinces, led by Isabela and Nueva Ecija, to again buy palay directly from farmers.

The provinces have committed to allot an initial P6 billion for the purpose.

Several farmers’ federations in Isabela, Cagayan, Pangasinan and Nueva Ecija will buy at least P2-billion worth of palay from their members.