Philippines : NFA urges local governments to help raise palay prices
The National Food Authority is urging Bicol local governments to use Financial Assistance to Local Governments (FALGU) funds to add incentives for palay purchases. Raising NFA’s price from ₱24/kg by ₱5–₱7 could give farmers up to ₱20,000 more income per hectare, offsetting low market prices near ₱17/kg.
LEGAZPI CITY (PIA) — The National Food Authority (NFA) is urging local governments in the Bicol region to assist rice farmers by increasing the support price for palay (unmilled rice) offered by the agency.
Julie Llenaresas, the NFA assistant director for Bicol, proposed to governors and mayors that they consider using part of their Financial Assistance to Local Governments (FALGU) to help raise the NFA’s buying price for palay.
“If the governors and mayors want to support farmers through FALGU, they can provide incentives,” Llenaresas stated during the Kapihan sa Bagong Pilipinas media briefing held in Legazpi City on August 12.
FALGU is a national government initiative aimed at assisting local governments in implementing various developmental projects, including those related to agriculture.
Llenaresas cited the city government of Sorsogon as a positive example, noting that it allocated P7 for each kilogram of palay sold by local farmers to the NFA.
“Noon as high as P7 po ang ibinigay ni Mayor (Ma. Ester) Hamor. That is already a big help sa mga magsasaka,” she said.
(Before, Mayor (Ma. Ester) Hamor provided as much as P7 per kilogram. That is already a significant help to farmers.)
She also recalled that some other mayors offered P5 as an incentive for each kilogram of palay.
“Imagine, the NFA buys (clean and dry) palay at P24 per kg, plus an additional P5 from local governments, that totals P29. That is a substantial support for them,” she explained.
According to calculations by industry experts, a P5 increase in palay price support can result in an additional income of P20,000 per farmer, based on the current national average yield of 4 tons per hectare.
This initiative could improve the income of local rice farmers, who are struggling with low palay prices during the current harvest season, Llenaresas said.
The decline in imported rice prices has led local traders to be unwilling to purchase local palay at prices higher than P17 per kg. (PIA Bicol/Masbate).
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Source : PIA
