Manila: The Department of Agriculture (DA) announced that the National Food Authority (NFA) could potentially acquire the capability to procure 30 percent of the country's total palay (unhusked rice) output, contingent upon the restoration of its key operational powers.
According to Philippines News Agency, the DA aims to propose to the members of the forthcoming 20th Congress, scheduled to convene in late July, the reinstatement of NFA's authority to sell non-aging rice stocks as a measure to stabilize market conditions. Agriculture Secretary Francisco Tiu Laurel Jr. emphasized that restoring this function is crucial to shielding local farmers from exploitative traders, thereby influencing farmgate prices and ensuring stable retail prices for rice.
Laurel highlighted the significance of allowing the NFA to sell rice stocks promptly, particularly through initiatives like President Ferdinand R. Marcos Jr.'s PHP20 per kilo rice program. This approach would enable reinvestment of funds into purchasing more palay at equitable prices. He further noted that an 'enhanced legislative authority,' along with increased budget and operational efficiency, could facilitate the NFA's goal of procuring 30 percent of the local palay output.
As of May 31, the NFA has already acquired 540,803 metric tons (MT) or 10,816,069 50-kg bags of palay from domestic farmers, translating to 6.81 million bags of milled rice. The NFA's current inventory is projected to exceed 8.4 million 50-kg bags of milled rice, sufficient for a 10.98-day supply. The agency aims to purchase palay to maintain a 15-day national rice buffer stock in preparation for potential calamities or natural disasters.
The NFA has maintained a buying price of PHP18/kg for fresh and wet palay, and PHP24/kg for clean and dry palay during the dry harvest season, under the flexible Price Range Scheme (PRICERS). This scheme allows the NFA to 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, offering rates significantly higher than those of traders.
In a related development, the DA revealed plans for the NFA to seek a budget increase to double its palay procurement capacity by 2026. NFA Administrator Larry Lacson, in a Viber message, expressed optimism that with all favorable factors, a doubled budget could facilitate the acquisition of a 15-day rice stock. For 2026, the NFA intends to request PHP18 billion to cover at least 10 percent of the nation's total palay production.
