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    DA to seek more funds for
    NFA’s palay-buying operation
     
    By Jennifer Ng
    Reporter
     

    THE Department of Agriculture DA is set to ask the national government to possibly double its P8.5-billion budget for procurement after the National Food Authority (NFA) doubled its palay-buying target to 1 million metric tons (MMT) during the palagad or main harvest.

    Agriculture Secretary Arthur Yap said the NFA has doubled its procurement target for the last quarter of 2008 on the back of expectations of a good harvest in major rice-producing provinces across the country.

    The DA is confident paddy rice production for the main harvest will hit the 10-MMT mark.

    “With the increase in palay procurement target of NFA, we also need to double the fund allocation so that buying will go on smoothly and successfully,” said Yap.

    A total of P8.5 billion had been allotted as Cereal Procurement Fund for buying 500,000 MT of palay during the main harvest.

    Yap said he is scheduled to meet with concerned funding agencies to ensure the availability of money required for the NFA’s aggressive palay-buying operations during the main harvest, which will peak between October and December.

    NFA Administrator Jessup Navarro said the agency has already bought a total of 485,628 bags of palay from individual farmers and farmer organizations as of August, representing a 404-percent accomplishment over the target of 120,000 bags for the month. From January to August, the NFA’s palay procurement totaled 852,279 bags or 108 percent more than the target of 409,200 bags for the period.

    With its aggressive palay-buying operations, the NFA said it is confident imports for next year will be lower than the 2.3 MMT it bought for this year to plug the production shortfall and beef up the buffer stocks of the agency.

    “With the increase in palay support price and additional cash incentive, the NFA sees a much bigger volume of procurement this year to ensure a safe level of stocks and lesser imports for next year,” said Navarro.

    He also said he has instructed all field offices to aggressively campaign among farmers to sell their produce to the NFA and take advantage of the government’s procurement price of P17 per kilogram and a cash incentive of P1,800 for every 50 bags of palay sold to the agency.

    Meanwhile, the NFA is encouraging farmers to avail themselves of an NFA passbook so they may sell their palay to the agency.

    The passbook records the volume of palay sold to the NFA and serves as a safety measure to ensure that only legitimate farmers will transact business with the agency.

    To avail themselves of a passbook, the NFA’s Navarro said individual farmers only need to submit a certification from the municipal agriculture officer indicating the farm hectarage being tilled and the volume being harvested.

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