For six months, palay farmers in ARCs can use government storage and drying facilities for free, the Department of Agrarian Reform (DAR) announced yesterday.
According to Agrarian Reform Secretary Roberto Pagdanganan, this was the agreement between the DAR and the National Food Authority.
Under the memorandum of agreement signed by the two government agencies, DAR will help link palay farmers cooperatives within Kalahi Agrarian Reform (KAR) zones and agrarian reform communities with the NFA. Kalahi stands for "Kapit-Bisig Laban sa Kahirapan."
Pagdanganan said the NFA is currently promoting the free use of its storage facilities for farmers within a period of six months under its Palay Negotiable Warehouse Receipt Program (PNWRP).
Pagdanganan noted that many farmers are forced to sell their palay stocks at a low price during the harvest season for lack of storage facilities. For palay stocks that will be stored longer than six months, reasonable charges will be imposed, Pagdanganan said.
For his part, NFA chair Angelito Sarmiento said the free storage program is NFA’s way of helping farmers cooperatives to combat unscrupulous traders, who take advantage of farmers during the harvest season when the farm gate price of palay is low.
"As an added incentive, the NFA is also willing to buy the deposited palay stocks within the KAR zones and ARCs at the agreed floor price in case they (farmers) choose to sell their stocks to the NFA," said Sarmiento.
Sarmiento added that farmers cooperatives can also withdraw their stored palay stocks from NFA warehouses and sell them to other parties anytime.