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Bohol set to increase NFA palay buying at P25/kilo

 

Bohol Gov. Erico Aristotle Aumentado (far right) in a meeting with (L-R) NFA Bohol NFA Bohol Branch Manager Pilita Barajan, Bohol Executive Assistant for Agriculture Nunila Pinat, and NFA-7 Regional Director Maria Fe Evasco. The provincial government has committed to add P6 to the NFA buying price of palay to help local farmers maximize their income. (Photo from NFA Bohol)

TAGBILARAN CITY, Bohol, Sept. 7 (PIA) -- The Bohol Provincial Government through Gov. Erico Aristotle Aumentado is set to sign a Memorandum of Agreement (MOA) with the National Food Authority (NFA) to implement the Palay Marketing Assistance for Legislators and Local Government Units (PALLGU) that will allow NFA to buy palay from local farmers for as much as P25 a kilo. 

Under PALLGU, the provincial government will download P5-M in funds to the NFA. 

Soon as NFA receives the funds, the rice agency will immediately request for the government support price equivalent for 16,667 bags at 50 kilos priced at P19 per kilo.

The P6 difference is an offer of the Bohol provincial government under PALLGU.

Under PALLGU, local government units (LGUs) here can put up a premium amount to top up the P19 government support price for NFA local palay procurement under the agency’s new mandate under Republic Act 11203.

RA 11203, which liberalizes the importation and exportation and trading of rice, lifts the quantitative import restriction of rice.

The same act mandates that the NFA stop importing rice and procure rice solely from local farmers and maintain an optimal level of rice inventory at any given time for emergency situations and sustain the government’s disaster relief programs, explained NFA Bohol Banch Manager Pilita Barajan.

Barajan said the government has also seen that the move can help farmers sell their palay as grains marketing has been a perennial problem among the rice farmers who are forced to sell their produce to traders who take advantage of the situation by offering them low buying price especially during the peak of harvest season when supply is high. 

The government, through the NFA, recognizes the need to help palay farmers market their produce and get a decent buying price by linking them with LGUs and legislators who can provide additional price support premium on top of the government procurement support price, Barajan added.

PALLGU opens a window of opportunity for palay farmers to maximize their income and provide LGUs and legislators with the opportunity to expand their services to communities and farmer constituents.

Under the agreement, the NFA will designate a warehouse and buying station for the local farmers to bring their palay, inform the provincial government if 75% of the top-up fund has been consumed, the volume of palay procured, and the names of farmer-beneficiaries enrolled in the program.

On the other hand, the provincial government, through a Letter of Intent to NFA, will detail its premium top-up amount, the volume of palay procurement funded, and the beneficiaries for the fund who are composed of individual farmers or farmers organizations.

While the provincial government is tasked to inform the farmer beneficiaries of the program where to deliver their palay and to which warehouse, it also may allow the use of its dump trucks so that farmers can facilitate the delivery to NFA buying stations.

During disaster relief operations, the NFA will make available for Bohol the rice equivalent of palay stocks procured from the farmers for its local buffer stocking, relief response, and food security. (RAHC/PIA7 Bohol)


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