NFA steps up rice buying efforts as floor price study underway

By Marita Moaje, Philippine News Agency

Binisita ni Pangulong Ferdinand R. Marcos Jr. ang Metro Pacific Fresh Farms (MPFF) sa San Rafael, Bulacan—ang pinakamalaking greenhouse facility sa Pilipinas. (PCO photo)

MANILA – The National Food Authority (NFA) is intensifying its palay procurement operations nationwide as the government evaluates a proposed floor price for unmilled rice to protect farmers from unfair trading practices and stabilize the market.

In an interview over Radyo Pilipinas on Thursday, NFA Administrator Larry Lacson said that newly reopened warehouses in Bulacan, Zamboanga, Cagayan Valley, and other rice-producing areas are now operational.

“Itong kailan lang, ilang araw pa lang nakakalipas, nag-reopen tayo ng mga bodega. Yung bodega po natin sa Maytika sa Malolos, may kapasidad na (Recently, just a few days ago, we reopened our warehouses. Our warehouse in Maytika in Malolos has a) 70,000-bag capacity,” he said.

“Kahit hindi pa po 100 percent completed yung renovation ng tiningnan namin, pina-inspect namin, ay pupwede na, ay ni-reopen na po natin para makatanggap na tayo ng palay sa Bulacan at karatig-probinsya (Even though the renovation is not 100 percent complete when we looked at it, we inspected it, and it is ready, let’s reopen it so that we can receive palay from Bulacan and neighboring provinces),” he added.

By rehabilitating and reopening these old warehouses, Lacson said the NFA is ready to absorb more harvests to help stabilize incomes for farmers and build up the agency’s buffer stock.

Other warehouses recently reopened include a newly repaired facility in Cagayan Valley and another in Zamboanga.

Lacson said these efforts aim to protect farmers from unscrupulous traders who take advantage of them and buy their palay at a very low price.

“So yung mga ganoong pamamaraan ang ating isinasagawa sa ngayon at ng makuha natin yung mga palay na magsasaka na hindi barat, hindi mababa ang presyo (So those are the methods we are implementing right now and when we get the rice from farmers, the price is not low),” he said.

Currently, Lacson said the NFA buys fresh palay at PHP18 to PHP19 per kilogram (kg), much higher than the PHP12 to PHP13/kg price being offered by some traders.

For dry palay, he said that the NFA buying price is PHP24/kg.

Meanwhile, Lacson said the agency has also received and distributed 14 new trucks to select NFA branches nationwide.

During a visit to an NFA warehouse in Bulacan on Wednesday, President Ferdinand R. Marcos Jr. reaffirmed his administration’s commitment to ensuring fair farm gate prices for rice farmers amid reports of palay being bought for as low as PHP11 per kilo in some areas.

The President also noted that unstable market prices hinder planning and long-term sustainability for both farmers and the government.

Boosting reserves

Lacson said the NFA currently holds over 414,000 metric tons of rice, enough to cover 11 days of national consumption, with ongoing efforts to meet the 15-day buffer stock requirement under the Rice Tariffication Law.

To sustain this effort, he said the agency proposed a PHP27 billion budget for this year, significantly higher than its PHP19 billion allocation for 2024, to support its continued procurement and other food security initiatives.

Enhanced accessibility of Benteng Bigas

Beyond procurement, Lacson said the NFA is working with the Department of Labor and Employment (DOLE) to expand access to the PHP20 rice, originally intended for vulnerable sectors, to include minimum wage earners.

He added that the agency is also advocating for amendments to the Rice Tariffication Law that would allow it to sell rice directly to consumers and enhance market efficiency and price stability.