Legazpi: The National Food Authority in Bicol (NFA-5) is expanding its warehouse capacity and post-harvest facilities to boost palay procurement, strengthen buffer stocks, and support local farmers, an official said Tuesday. In an interview, NFA-5 Assistant Regional Manager II Julie Llenaresas announced the construction of three warehouses in Libon, Albay; Libmanan, Camarines Sur; and Virac, Catanduanes, under its modernization program.
According to Philippines News Agency, the facilities will be equipped with rice mills, mechanical dryers, and other post-harvest equipment, enabling the agency to increase procurement while maintaining grain quality. Llenaresas mentioned that the Libon facility is about 75 percent complete, with milling and drying equipment already delivered. The project is expected to become operational by November.
Llenaresas stated, "Instead of outsourcing milling services, we will be able to mill our procured palay in-house. With the dryers, we can also accept wet palay during the rainy season and dry it immediately while maintaining its quality." The expansion comes as the NFA prepares for the second-semester harvest.
She emphasized the importance of extra warehouse space for boosting procurement and maintaining adequate rice reserves for emergencies, calamities, and the ongoing Benteng Bigas Meron Na (BBM Na) program. "We must always maintain adequate buffer stocks because we do not know when disasters or emergencies will occur," she added.
As of July 19, NFA Bicol holds an inventory of 743,091 bags of palay and 70,157 bags of locally milled rice. The Camarines Sur branch has the largest palay inventory at 505,277 bags, followed by Albay with 143,363 bags and Sorsogon with 94,451 bags. Llenaresas noted that warehouse space had been one of the agency's biggest challenges during the first semester due to high inventory levels.
The continuous distribution of rice through the government's subsidized rice program and emergency operations helped free up warehouse space, allowing the agency to prepare for another procurement round. The modernization program is also expected to provide farmers with a more stable market for their harvest.
Llenaresas highlighted that the NFA currently offers a buying price starting at PHP27 per kilogram (kg), which may rise to PHP30/kg depending on grain quality. She said the price is about PHP5 higher than what traders usually offer, allowing farmers to earn more despite rising production costs. With the installation of mechanical dryers, the agency will also be able to accept freshly harvested or wet palay, enabling farmers to sell their produce even during the rainy season.
Meanwhile, Llenaresas mentioned that the government's BBM Na! rice program has increased the need for the NFA to maintain sufficient rice buffer stocks as more local government units (LGUs) participate in the subsidized rice initiative. She said NFA Bicol has distributed 171,471 bags of rice since the rollout of the PHP20-per-kilo rice program, ensuring a steady supply for redemption sites across the region.
Participating LGUs enter into a memorandum of agreement with Food Terminal Inc. (FTI), which authorizes the volume allocation of subsidized rice. The NFA is responsible for issuing the rice stocks to the LGUs for distribution to qualified beneficiaries. Llenaresas stated that this arrangement allows vulnerable sectors to purchase subsidized rice in their communities rather than traveling to NFA redemption sites, helping reduce transportation costs, especially for residents in remote areas.
