Manila: The National Food Authority (NFA) on Monday announced the procurement of palay (unhusked rice) at a higher price to support Filipino farmers amid rising production costs. Under the flexible Price Range Scheme (PRICERS), the agency began buying clean and dry palay at PHP30 per kilogram in Bulacan and Nueva Ecija.

According to Philippines News Agency, NFA Administrator Larry Lacson communicated via Viber message that the initiative aims to cushion the impact of rising fuel prices on rice producers during the peak harvest season. Lacson stated, 'Makakatulong ito na mabawi ng magsasaka 'yung gastos sa petrolyo (This will help farmers to recover from their petroleum expenses).' The production cost in the two provinces is estimated at PHP15 per kilo.

Lacson further explained that the higher buying price will also help protect farmers from unscrupulous traders. He said, 'Mapipigilan nito ang mabilis na pagbagsak ng presyo ng traders dahil magkakaroon ng option ang farmer na magbenta sa NFA (This will prevent the rapid decline of traders' prices because farmers have the option to sell it to the NFA).'

In addition to supporting farmers, the higher buying prices will allow the NFA to secure an adequate supply for the country's national rice buffer stock in times of natural disasters and calamities. This move is also in line with the government's PHP20 per kilo rice initiative under the 'Benteng Bigas Meron (BBM) Na!' program, which addresses the rising demand for government-subsidized rice.

Meanwhile, the NFA will conduct an inspection on Thursday to ensure proper loading of rice stocks for the P20 program in San Jose, Occidental Mindoro. The batch will deliver 35,000 bags out of the 200,000 bags of the target rice stock shipment to Cebu, serving both calamity buffer stocking and the BBM Na program requirement.

The NFA aims to secure 790,000 metric tons or 15.8 million bags of palay to sustain the nine to 15-day national rice buffer stock requirement.