- NFA to raise wet palay buying price to PHP21/kg from September.
- Iloilo rice import arrivals paused during peak harvest.
- New PHP355.4m Dumangas hub to boost NFA procurement and buffer stocks.
From the September harvest, the NFA will increase its minimum procurement price for wet palay to PHP21/kg from PHP17/kg.
At the same time, imported rice will not be allowed to unload at ports in Iloilo from mid-September to the end of November, limiting imported supplies during the peak local harvest period.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said this was intended to help farmers cope with rising production costs, particularly the cost of fertiliser and other agricultural inputs.
“I’ve ordered the NFA to set the minimum buying price for wet palay at PHP21 per kilo to help address the higher cost of fertilser and other inputs. That is what I can do to ensure that you would earn a decent return from your hard work.”
Both measures were designed to bolster farmers’ bargaining power by increasing the NFA’s influence on domestic palay prices while reducing competition from imported rice when local production is at its highest.
Higher processing capacity
Tiu Laurel announced the measures during the inauguration of a PHP355.4m (USD5.77m) modernised post-harvest facility in Dumangas, Iloilo.
Located in Barangay Monfort South, the integrated grains facility includes a modern warehouse, a 10-tonne-per-hour rice mill and a 240-tonne-per-day mechanical grain dryer.
According to NFA, the newly inaugurated facility can process up to 4,800 50kg bags of palay daily.
Expanded storage capacity will enable the agency to absorb between 10 to 12 per cent of Iloilo’s covered production areas, which the government said should help stabilise local market prices.
“Modern post-harvest facilities allow the NFA to procure more palay, cut post-harvest losses, improve grain quality and build stronger buffer stocks. Every bag we save and every bag we procure strengthens the country’s ability to keep rice affordable and available, especially during supply disruptions,” said Tiu Laurel.
“This is an investment in food security as much as it is an investment in our farmers.”
Iloilo accounts for around half of rice production in Western Visayas and contributes more than 5 per cent of national output, making it a strategic province for the country’s rice sector.
Tiu Laurel said two additional large rice processing centres in Iloilo were expected to be operational by the October harvest season.
The investment is also expected to significantly increase the NFA’s buying capacity.
From an average annual procurement of 281,728 bags in Dumangas over the past five years, the agency expects to purchase an additional 3,600 bags of palay daily, or about 324,000 bags over two cropping seasons, more than doubling its procurement volume in the area.
That would raise the NFA’s palay absorption rate in the covered production areas to between 10 and 12 per cent.
This would give farmers a larger and more dependable institutional market while reinforcing the government’s buffer stocking programme.
Part of broader food security push
The project is part of a nationwide programme under which the NFA is building 36 modern rice processing facilities aimed at reducing post-harvest losses, improving farmer incomes and strengthening food security.
Half of the facilities are expected to be operational during the current wet season, with the remainder scheduled to come online before next year’s dry-season harvest.
Tiu Laurel said said the investments support President Ferdinand Marcos Jr.’s goals for the country’s agriculture sector.
“These are part of President Ferdinand Marcos Jr.’s vision of a modernised agricultural sector, where farmers earn a decent living, consumers enjoy affordable food, and the Philippines achieves lasting food security.”
