The National Food Authority (NFA) is implementing a new scheme that aims to provide registered farmers with assured market access and enhance the food agency’s palay procurement operations.
NFA Administrator Larry Lacson said the agency launched for the first time a purchase order (PO) system, a procurement arrangement between the grains agency and farmers.
‘We started this season the purchase order system, wherein the NFA can already issue a PO to farmers while they’re still planting. They just have to wait for the harvest and then bring it to the (warehouses),’ Lacson told reporters.
He added that the respective POs issued by the grains agency include the date and the estimated volume of unmilled rice the farmers will deliver to the NFA.
Eligible farmers include those listed in the registry system for basic sectors in agriculture (RSBSA).
Under the rules, farmers who submit and comply with PO requirements will be prioritized in scheduling and procurement arrangements.
Despite this, Lacson noted that the mechanism would not replace its existing procurement procedures; rather, it seeks to improve the agency’s current practices and tackle operational challenges.
‘That’s on top of our regular procurement, which is on a first-come, first-served basis. We also have a fast lane wherein small farmers with 70 bags and below have their own line for faster processing.’
The NFA said the PO system’s implementation would address ‘persistent’ operational and market-related concerns that tend to beset farmers.
This includes long delivery queues and congestion in warehouses; uncertainty in procurement schedules and acceptance capacity; price manipulation and dependence on private traders.
Also included in the bottlenecks that the grains agency aims to address are delays in payment processing due to incomplete or unprogrammed deliveries; and limited coordination between farmers and NFA procurement units.
Through the system, the grains agency said accountability and traceability in procurement transactions would be strengthened. This also ensures that palay purchased by the NFA complies with stipulated quality standards, it added.
‘This is the first time that we implemented the PO system, because then at least, we’ve already programmed the entry of palay since we know the date of delivery and volume. This would help in properly managing the incoming unmilled rice,’ Lacson said.