MANILA-- Local farmers are benefitting from the current high farmgate price of palay as the summer harvest begins to peak, the National Food Authority  said yesterday.

NFA Administrator Renan Dalisay said data from the Bureau of Agricultural Statistics showed that the farmgate price of palay started to increase beginning the third week of February, with the average price of ex-farm price going up by 0.47 percent from P7.82 to P7.91 a kilo during the last week of February.

But commercial rice traders, particularly in Bulacan, were reportedly buying palay up to P22 per kilogram.

Earlier in February, the NFA announced that it was embarking on massive palay procurement after receiving reports that farmgate prices had dipped below the government support price of P17 per kilogram plus incentives.

"In some areas, such as Regions 4, 6 and 12, prices were monitored to be as low as P14 to P16 per kilogram," Dalisay said.

He assured the farmers that the agency is ready to intervene in the market anytime the price of palay goes down during the peak of the harvest season to prevent grain traders from taking advantage of the glut in supply.

“Aside from the support price, NFA is giving the farmers additional incentives up to 70 centavos per kilogram for delivery, drying and cooperative development,” Dalisay said.

Data from BAS showed that at the government support price of P7 per kilogram, farmers still get a fair return for their produce.

Historical data from BAS also revealed that the average cost per kilogram of palay ranges from P10.88 to P11.29 per kilogram from 2011 up to 2013.

In the meantime, Dalisay said that it is all systems go for the agency’s palay procurement operations this harvest season.

“Procurement funds were already remitted to the field offices while manpower, transport and other logistical requirements are already in place. There are 413 buying stations and mobile procurement teams ready for deployment,” he said.

NFA is continuously procuring palay in production areas such as Iloilo, Sultan Kudarat, Palawan, Antique, and Isabela provinces and has already procured a total 220,569 bags by the end of February this year, he also said.*PNA

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