TACLOBAN CITY – The municipal government of Matag-ob in Leyte and the National Food Authority (NFA) have formalized their partnership through the signing of a memorandum of agreement (MOA) to implement the Palay Marketing Assistance for Legislators and Local Government Units (PALLGU) Program.

Mayor Bernandino Tacoy and Engr. Charles Alingod, acting regional manager, signed the agreement on Feb.19.

PALLGU, a program initiated by the NFA, involves the local government unit providing subsidies to farmers by adding at least P2 per kilogram to the agency’s procurement price, ensuring rice farmers receive a fair or higher price for their produce.

The Matag-ob LGU has allocated P500,000 as a counterpart to the PALLGU program of the NFA.

Under this program, the palay sold to the agency by rice farmers must meet quality standards set by the NFA.

As part of the implementation of PALLGU in the municipality, farmers participating in the program are required to allocate 10 sacks of unhusked palay to sell to the agency.

The current buying price set by the NFA at the time of the press release stands at P23 per kilogram.