Historic high! Govt Ups Buying Price P30/kg For Husked Rice

In a move which could result in a dramatic increase in the production of local paddy rice, the government through the National Food Authority (NFA) has increased the buying price to P30 per kilo for clean and dry grains.
The NFA will also buy fresh harvest at P17 to P23 per kilo, marking the highest prices government offers to local farmers produce in an attempt to boost its buffer stocks.
Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement that NFA “has raised its buying price for palay or unhusked rice—not only to build its buffer stock but also to help boost farmers’ income by topping the offers of private traders.”
“The NFA Council approved an increase in the procurement price to a range of P23 to P30 per kilogram for dry and clean palay from P19 to P23 per kg announced in September last year,” the DA statement said..
These new buying price levels mark the first time in the history of the country’s rice industry that government has taken consideration of realities on the ground where NFA could hardly buy local palay for their buffer stocks as private traders have raised buying price to P30 per kilo following increase in the prices of rice in the world market.
The government’s move, which virtually sets the new buying price threshold for paddy rice in the country, could serve as a motivation for rice farmers to plant and produce more.
It may, however, result in an increase in the market prices of milled rice but this could be addressed if the NFA is allowed again to sell its aging buffer stocks in the market at lower prices.
Under the Rice Tariffication Law, the NFA is prohibited from selling low-priced rice in the market and it could only release its old stocks to government agencies or to the private traders at negotiated prices.
In the past, the NFA was allowed to import 25% Broken Rice which it sold in the market for P27 per kilo which effectively stabilized market prices.
This latest development all the more emphasizes the need to review and amend the RTL which failed to attain its targets of bringing down rice prices int he market by P7 and boosting local paddy rice production.
#GovernanceIsCommonSense!