NFA to increase palay procurement, could limit rice imports to prop up weak prices

THE Department of Agriculture (DA) said it is stepping up procurement of palay (unmilled rice) and is considering curbs on rice imports after farmgate prices fell in key rice-producing provinces.

In a statement on Sunday, the DA said farmgate prices of fresh palay dropped to P16 to P17 per kilo in parts of Nueva Ecija, Pampanga, Isabela, and Cagayan, with about 77% of the harvest already completed.

It said, however, that the decline is localized, with prices in other areas at P23 to P24 per kilo.

To help stabilize prices, the DA said the National Food Authority (NFA) raised its buying price for dry palay to as much as P30 per kilo and is ramping up procurement in areas where prices have weakened.

The DA added that the NFA is introducing a direct purchase order system to allow farmers to sell to the grains agency ahead of the harvest.

Meanwhile, the DA said it is considering limiting monthly rice import volumes between June and August to ensure a stable supply without further dampening farmgate prices ahead of the next harvest cycle.

The DA said it is targeting a P22-per-kilo farmgate price for the September-to-November harvest period, which it sees as a crucial recovery window for farmers. — Vonn Andrei E. Villamiel