The Province of Oriental Negros has allocated a premium of P1 million for the purchase of palay through the National Food Authority's Palay Marketing Assistance for Legislators and Local Government Units.

NFA said in its report released this week that the amount is equivalent to an additional P2 per kilogram on top of the support price set by the agency that recently entered into an agreement with provincial government of Oriental Negros with rice requirement of 10,000 bags.

Under the marketing assistance program, which seeks to maximize the income of palay farmers, the NFA enters into agreements with LGUs and legislators to provide additional premium for the purchase of palay.

Legislators and LGUs provide additional premium of at least P1 per kilogram on top of the NFA support price for palay of P10 per kilogram. Both will then have the right to buy the stocks from NFA bought under the PALLGU. The NFA will assist the LGUs and legislators in sourcing their rice requirements using the network of the agency.

The report said that palay stocks may be stored in any designated NFA warehouse for free for up to four months. If the stocks are not withdrawn after the four-month free storage period, the NFA shall charge the buyer with 1.5 percent carrying cost for the succeeding months.

Maximum storage period is six months and if the buyer is not able to withdraw these stocks after six months, the NFA will have the right to auction off or sell the palay stocks.

Only palay farmers' organizations and individual farmers who are holders of NFA Passbook will be qualified as sellers while only the LGUs and legislators will be qualified as buyers under the program.*NLG

back to top