DA- Philippine : NFA may buy 30% of ‘palay’ rice output once key powers restored
The Philippine Department of Agriculture (DA) plans to restore the National Food Authority’s (NFA) key powers, allowing it to sell non-aging rice stocks for market intervention. This move aims to stabilize rice prices, support local farmers, and potentially enable the NFA to procure 30% of the country’s palay output. As of May 31, NFA has procured over 540,000 metric tons of palay. For 2026, the agency plans to request a ₱18 billion budget to expand procurement efforts and maintain a sufficient rice buffer stock.
MANILA – The Department of Agriculture (DA) on Tuesday said the National Food Authority (NFA) may eventually obtain the capacity to procure 30 percent of the country’s total palay (unhusked rice) output once its key powers are restored.
The DA made this remark as it plans to ask members of the upcoming 20th Congress, which is set to open late in July, to reinstate NFA’s power to sell non-aging rice stocks for market intervention.
In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. said restoring such a function will protect local farmers from unscrupulous traders and consequently influence farmgate prices and ensure stable rice retail prices.
“If the NFA is allowed to sell rice stocks promptly, especially through initiatives like President (Ferdinand R.) Marcos Jr.’s PHP20 per kilo rice program, we can reinvest the funds to buy more palay at fairer prices,” he said.
Tiu Laurel stressed that an “enhanced legislative authority,” alongside continuous increases in budget and operational efficiency, may help NFA achieve 30 percent of local palay procurement.
As of May 31, the NFA has already procured 540,803 metric tons (MT) or 10,816,069 50-kg. bags of palay from local farmers, which is equivalent to 6.81 million bags of milled rice.
The NFA’s total expected inventory is pegged at more than 8.4 million 50-kg bags of milled rice, which is good for 10.98 days.
Overall, the NFA targets to buy palay from local farmers to cover the 15-day national rice buffer stock in case of calamities or natural disasters.
In terms of palay procurement, the NFA maintained a buying price of PHP18/kg. of fresh and wet palay, and PHP24/kg. for clean and dry palay during the dry harvest season, under the flexible Price Range Scheme (PRICERS).
Under this scheme, the NFA may adjust the palay buying price from PHP17 to PHP23 per kilogram for fresh or wet palay; and PHP23 to PHP30/kg. for clean and dry palay, much higher than traders’ price.
The DA, meanwhile, said the NFA will seek to double its budget for palay procurement in 2026.
In a Viber message, NFA Administrator Larry Lacson said a doubled fund will be able to cover the purchasing of 15-day rice stock.
“If lahat ng factors maging (all the factors turned out to be) favorable, yes,” he told the Philippine News Agency.
For 2026, the NFA is set to request PHP18 billion, which can buy at least 10 percent of the country’s total palay production. (PNA)
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Source : PNA
