DA Sec. orders NFA to lower rice prices to P27/kilo

The Department of Agriculture (DA) is now doing something to the sad plight of the Filipino farmer.

DA Secretary William Dar has ordered the National Food Authority (NFA) to bring down rice prices to PHP27 per kilo by flooding Metro Manila markets with 3.6 million bags of rice.

DA also directed the NFA to increase palay support price to PHP19 from PHP17 per kilo.

(photo credit to owner)

"The NFA Council (NFAC) met and there are a number of big developments in relation to palay procurement and price of rice in the market,” Dar said during the press conference in Quezon City.

The Agriculture chief said the NFAC decided for the NFA "to flood Metro Manila markets and other key cities nationwide with imported NFA rice."

"(Some) 3.6 million bags of imported rice will be out in the market for one month starting today (Sept. 12). All bags will be up until October 10," he explains.

The DA Secretary said the NFA rice will be sold at PHP25 per kilogram wholesale, and PHP27 per kg. retail.

When sold at retail price of PHP27 per kilo, the 3.6 million 50-kilogram bags would amount to PHP4.86 billion, which the NFA can readily use to procure from farmers, he said.

Dar said the PHP2 increase in palay price support could translate to PHP8,000 additional income per farmer, based on current national average yield of four tons per hectare.

"Palay buying by NFA to farmers will now be at PHP19 per kg. from PHP17, pero wala na ang incentives (but no more incentives)," he said.

Currently, NFA's maximum buying price for clean and dry palay to PHP20.70 a kilo for farmer cooperatives and PHP20.40 per kilo for individual farmers.

"We would like to believe that flooding the market with 3.6 million bags of imported rice will have an impact in lowering (the price of rice in the market)," Sec. Dar said.

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Report from PNA