The National Food Authority (NFA) is expecting the buying price of palay to increase as the country braces for the possible onset of a severe El Niño.
According to NFA Administrator Larry Lacson, the buying price of clean and dry palay could rise to P30 per kilogram from the current P27 once El Niño hits the country.
Lacson explained that prices may increase due to limited palay supply, which could trigger competition among rice millers for available stocks.
He added that the NFA has approved a maximum buying price of P30 per kilogram, noting that they need to remain competitive to secure sufficient palay stocks.
Despite this, Lacson expressed hope that the projected El Niño would not have a significant negative impact on the country.
