MANILA—The National Food Authority (NFA) is anticipating a possible spike in palay buying prices in case a severe El Niño hits the country.
In a press briefing on Friday, NFA administrator Larry Lacson told reporters that there is no other option but to increase its buying price of clean and dry palay from the current P27 per kilo to a maximum of P30 per kilo if supplies are affected by El Niño.
“Ano epekto sa amin? It would be, the price of palay would be higher kasi mas kakaunti yung nasa circulation. Natural lang na mag-aagawan ng stocks, lalo na ang mga millers,” Lacson said.
According to Lacson, the NFA Council only approved the maximum buying price for clean and dry palay up to P30 per kilo.
“Medyo ang pressure pataas ang presyo ng palay, kasi kakaunti. We have to compete if we want to really get the volume we want. Hanggang P30 [per kilo] lang maximum allowed as approved by the NFA council,” Lacson explained.
But the NFA official still hopes that the ongoing El Niño, which is forecast to intensify in the coming months, will not have a severe impact on palay farmers. Lacson said he hopes farmers can harvest their crops before the worst effects of the weather phenomenon arrive.
Lacson explained that aside from palay farmers, other farmers in the country are also now implementing a cropping mechanism to avoid the possible direct effects of any weather phenomenon like El Niño.
As NFA administrator, Lacson is also a member of the El Niño Crisis Management Committee created by the government to address any possible effects of this weather phenomenon.
He said the Department of Agriculture estimates that about 30 percent of the projected palay harvest during the wet season will be lost.