MANILA, Philippines The National Food Authority (NFA) plans to set up more rice-buying stations for the main harvest this year to meet governments aim of buying 500,000 metric tons of palay.
This figure is not even 10 percent of the projected total national output for this year, but the NFA expects it to surpass its purchases last year, which accounted for only 0.9 percent of the national production.
NFA administrator Jessup P. Navarro hopes the additional buying stations will help increase the agencys procurement for the remaining months of the year, according to an NFA statement issued on Tuesday.
The NFA has 350 operational buying stations in palay producing areas nationwide.
He is optimistic that the NFA will be able to buy its targeted 500,000 metric tons of palay until December in the wake of the recent increase in the agency's buying price.
The NFA is buying clean and dry palay with 14 percent moisture content and a minimum of 95 percent purity at P17 per kilo.
At a conversion rate of 50 percent, it takes two kilos of palay to produce a kilo of rice, which means the price for a kilo of rice is P34.
Traditionally, palay harvested during the wet season has to be dried, causing an increase in expense for farmers.
In addition, NFA grants an additional incentive of P1,800 to farmers for every 50 bags of 50 kilos of palay sold to the agency.
"The additional incentive is intended to help farmers subsidize the cost of their farm inputs like fertilizer," Navarro said.
He added that with the additional buying stations and the increase in the buying price, NFA believes it can beef up its buffer stocks.
In case it fails, which is more likely, the agency will again import bulk of its rice and compete with the private sector as it intends to flood the market with commercial rice to be sold at P25 per kilo.
Technically, the subsidized rice sold at P18.25 per kilo will only be restricted to holders of so-called access cards, who will be served, not by accredited NFA rice dealers but by government outlets, local government units (LGUs), and other private partners.
The Palace has said 50 million such cards will be disseminated to as many poor Filipinos and they would have to line up to buy limited quantities of the grain.
Most of the buying stations are located in major palay producing areas. Region 4 has 52 buying stations, followed by Region 2 with 46, Region 3 with 35 and Region 6 with 22.
The NFA is putting up mobile procurement teams to serve farmers in remote areas. Most buying stations are stationary and are located in warehouses either owned or leased by NFA.
Cereal Procurement Funds (CPF) were sent in advance to the regional and provincial offices for their initial buying activities to serve farmers who harvested early and wanted to sell their palay to the agency.
"The regional and provincial executives were also tasked to coordinate with the local government officials to inform them of NFA's current palay buying programs," said Navarro.
Central office personnel will also be fielded to act as special disbursing officers and cashiers to complement the additional stationary buying stations and mobile procurement teams during the main harvest.
Employees are now undergoing training as quality assurance officers for the stations. - GMANews.TV