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NegOcc allocates P5-M for palay procurement

By Nanette Guadalquiver

September 10, 2019, 7:45 pm

BACOLOD CITY -- The Negros Occidental provincial government has set aside an initial PHP5-million fund for the procurement of palay (unhusked rice) from farmers to help prop up the farm gate price.

Governor Eugenio Jose Lacson said on Tuesday the province’s buying price will be at PHP15 per kilogram.

“We have decided that the province will buy palay. We’re now working on the mechanics on how to go about (it). Once the mechanics are fixed, we will start immediately,” he added.

Lacson noted that the fund allocation is included in the 2019 Annual Investment Plan approved by the Provincial Development Council.

“With the initial PHP5 million, after two weeks we can roll it back,” the governor said, adding the province will target rice farmers who own farms of one hectare or less.

Lacson said the province will procure the palay then sell the stocks to government institutions. The proceeds from the sale will be used to continue buying from farmers until needed.

According to the Office of the Provincial Agriculturist (OPA), the average prevailing price of palay in Negros Occidental is PHP13 to PHP14 per kilogram.

Last week, Regional Director Remelyn Recoter of Department of Agriculture (DA)-Western Visayas met with Lacson to discuss ways to help Negrense rice farmers cope with low prices of palay.

Recoter said the province is also inclined to implement an economic enterprise mode utilizing the rice processing center in Bago City, which has drying, milling, and storage facilities, and accept the produce of the farmers not accredited and without the National Food Authority (NFA) passbook.

The DA official added she is thankful that Lacson heeded the challenge of Agriculture Secretary William Dar to directly engage in the rice industry value chain to provide direct solutions to decreasing palay prices.

The NFA procures palay from local farmers at a support price of PHP17 per kilogram and also provides incentives of PHP3 per kilogram, and PHP0.70 per kilogram comprised of drying incentive of PHP0.20, a delivery incentive of PHP0.20, and cooperative development incentive fee of PHP0.30 intended for associations where they belong.

An individual farmer can receive a maximum of PHP20.40 per kilogram while members of farmer cooperatives can get a maximum of PHP20.70 per kilogram for palay sold to the NFA. (PNA)

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