Bulacan, Philippines – The Department of Agriculture (DA) is seeking to double next year’s budget of the National Food Authority (NFA) to around P18 billion to allow more purchases from rice farmers.
This was the response of Agriculture Secretary Francisco Tiu Laurel to questions from farmers in Bulacan on how the government can sustain buying local produce at P24 per kilogram, while rolling out a subsidized rice program.
Tiu Laurel said the P20-per-kilogram rice program is for targeted beneficiaries, and not the general public.
“So, ‘yung 20 million metric tons ng palay na pino-produce natin dito, hindi mababawasan yun eh. Ang susubukan, ang babawasan natin is ilan yung nai-import,” Tiu Laurel said in a consultative meeting on Monday, May 26.
[Translation: We could produce around 20 million metric tons of palay and that won’t decrease. What we will be targeting is lowering the volume of imports.]
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Tiu Laurel said President Ferdinand Marcos Jr. agreed that the NFA’s budget to buy harvest should be doubled.
For this year, the NFA has a budget of P9 billion for palay procurement.
“Kailangan lang maipasa natin ito sa Kongreso sa susunod na budget hearing, ‘yung NFA buying budget, ido-doble,” the agriculture chief said.
“From P9 billion a year, gagawing minimum of P18 billion a year. So, ibig sabihin, kung ilan ‘yung dini-deliver niyo dati sa NFA, madodoble ‘yun,” he added.
[Translation: The doubling of NFA’s buying budget needs to pass Congress in the budget hearings. From P9 billion a year, we would have a minimum of P18 billion a year. That means the volume of your delivery to the NFA could also double.]
Tiu Laurel said the DA plans to buy 500 trucks next year in a bid to reach more small farmers. For this year, the agency has a budget to buy 90 trucks.
Tariffication law amendments
The DA chief also told farmers of the planned floor price for palay to prevent low farmgate prices in some areas, which could be done through the issuance of an administrative order.
He acknowledged, though, that it may need legislation, particularly an amendment to the rice tariffication law (RTL).
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“Kahit na may floor price ka, kung hindi mo naman kilala at hindi nakarehistro ‘yung trader… napaka-importante talaga ‘yung regulatory powers ng NFA,” he told reporters in a chance interview.
[Translation: Even if you have a floor price, if traders are not registered… that’s why it is important that the NFA has regulatory powers.]
Tiu Laurel also told farmers that the RTL limited the NFA role to buy palay for buffer stock. Old stocks could not be disposed of immediately to prepare for harvest.
In 2023, Congress passed changes in the law that included a “food security emergency” declaration that would allow the DA to release NFA stocks but only to local government units, government agencies, and Kadiwa stores.
The NFA reopened on Monday its warehouse in Malolos, Bulacan to free up space for palay purchases and counter rock-bottom prices dictated by traders.
The DA traders buy palay in some areas for as low as P11.50 per kilogram. In April, the national average farmgate price was P17.69 per kilogram.
