Philippine : NFA beefs up palay procurement after strong buying by private traders
The Philippines’ National Food Authority intensified palay procurement after private traders reduced buying prices. From April to early May, the NFA bought 11,301 MT of palay, while rice inventory reached 337,618 MT, equivalent to 8.74 days of national consumption, strengthening buffer stocks ahead of lean months.
MANILA – The National Food Authority (NFA) is now beefing up palay (unhusked rice) procurement after being on the sidelines due to a strong buying approach by private traders in the past months.
NFA Administrator Larry Lacson said the agency is now positioning to secure the country’s national rice buffer stock following a decline in traders’ buying prices in April.
“The NFA has aggressively stepped up palay buying,” he said in a statement, citing a shift from earlier months when private traders outpaced the NFA.
From April to the first week of May, the NFA has already procured 11,301 metric tons (MT) of palay.
This is more aggressive than the procured volume since January, when the NFA only hit 4.2 percent of its 313,315 MT target for the said period, equivalent to 13,127 metric tons or 262,540 bags of palay.
For his part, Department of Agriculture Secretary and NFA Council chairperson Francisco Tiu Laurel Jr. said what the grains agency is doing is meant to maximize the benefit to farmers.
“The NFA has been adjusting to a very dynamic market – stepping back when private traders offered higher prices to ensure farmers benefited, then stepping up its buying as prices normalized,” he said.
“Moving forward, it must continue to strategically build buffer stocks, prioritize direct support to small farmers, and stay ready to stabilize supply and prices, especially as we approach the lean months and the next main harvest cycle..” Tiu Laurel added.
As of May 7, the agency’s rice inventory is at 6.75 million bags or 337,618 MT – eniugh for 8.74 days of national consumption based on the daily demand of 38,608 MT.
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Source : Philippine News Agency
