DA to purchase P14 billion worth of palay from local farmers

The Department of Agriculture on Sunday said it would buy at least P14 billion worth of palay or unhusked rice from local farmers this 2020 at P19 per kilo.

In a statement, Agriculture Secretary William Dar said he had instructed National Food Authority (NFA) Administrator Judy Dansal to use their annual procurement fund to “serve and benefit more farmers.”

"We expect more vibrant palay-buying and rice trading activities this year as the Department of Social Welfare and Development (DSWD) will distribute P600 worth of NFA rice instead of cash every month to each of the beneficiaries of its Pantawid Pamilyang Pilipino Program," Dar explained.

The Agriculture Secretary said that the DSWD intervention, which was worth P31 billion annually, would help improve palay prices.

Major provincial governments and farmers’ federations would also continue to purchase palay from local farmers.

"Just like last year, we expect about 30 major rice-producing provinces, led by Isabela and Nueva Ecija, to again buy palay directly from their farmers. They commit to allot an initial P6 billion for the purpose," the DA chief said.

Some of the farmers' federations that would participate in the purchase of palay from their own members were those in Isabela, Cagayan, Pangasinan, and Nueva Ecija.

These federations would buy at least P2 billion worth of palay.

"In all, this year we are looking at an initial P53 billion from the public sector to buy palay at favorable prices," Dar said. — Julia Mari Ornedo/DVM, GMA News