By DA NFA

The National Food Authority (NFA), a government agency under the Department of Agriculture, made significant strides in 2024, achieving its highest rice buffer stocks in years, improving its operations, and significantly reducing its deficit despite facing challenges stemming from a leadership change and an ongoing Ombudsman investigation.

In the wake of an Ombudsman probe that resulted in the suspension of 139 NFA officials and employees, the agency struggled to compete with private rice traders in purchasing palay. However, the NFA Council, led by Agriculture Secretary Francisco P. Tiu Laurel Jr., appointed Larry Lacson as the new NFA administrator and raised the procurement price for palay from a range of P16 to P23 per kilo to P17 to P30 per kilo. This decision was pivotal in attracting more rice farmers to sell their produce to NFA, setting the stage for a dramatic increase in buffer stocks.

As of February 2025, NFA’s total palay inventory stood at 399,701 metric tons (nearly 8 million bags), sufficient to cover eight days of supply. This marked a significant improvement from just one day of buffer stock prior to Administrator Lacson’s leadership.

In addition to the buffer stock boost, NFA undertook measures to modernize its supply chain. A key component of this modernization is the Masagana Agri-Food Infrastructure Modernization Program (MAFIM), a multibillion-peso nationwide initiative to build new post-harvest facilities.

MAFIM is expected to minimize annual wastage by approximately P10 billion, benefiting both farmers and consumers. MAFIM is part of the legacy project of President Ferdinand Marcos, Jr and Sec. Tiu Laurel.

On the financial front, NFA successfully avoided an estimated P631 million in expenses in 2024 through strategic measures, including the incorporation of the

Buffer Stock Incentive (BSI) for farmers under the PRICERS program. The agency also implemented a “less movement” policy for rice stocks, reducing logistical costs and saving an additional P172.3 million. These cost-cutting measures helped reduce NFA’s deficit, which dropped from P6.097 billion in 2023 to P3.753 billion in 2024.

The NFA also focused on strengthening its workforce, with 543 personnel appointments signed as part of an ongoing restructuring. These appointments aim to improve employee morale, productivity, and overall efficiency.

Regulatory reforms introduced by NFA further streamlined operations. A fast-lane service for small farmers selling fewer than 50 bags of palay reduced waiting times, while the agency eliminated the re-bagging of 20 percent of its total palay procurement, which is expected to save around P215.4 million in operational costs in the coming year.

NFA plans to procure 90 new trucks in 2025, with an additional 150 trucks scheduled for 2026. These efforts will help address logistical challenges and ensure that farmers, including those in remote areas, have the opportunity to sell their produce to NFA.

Administrator Lacson has also prioritized addressing corruption within the agency, instructing NFA’s legal office to file administrative and criminal cases against erring officials. “We are committed to restoring public trust and transparency,” he said.

However, Secretary Tiu Laurel stressed the need to restore some of NFA’s powers to more effectively manage the rice market. “We simply cannot fight these battles with one hand tied behind our backs. We need to restore NFA’s powers to regulate rice retail and manage stocks more effectively,” he said. Despite the amendment of the Rice Tariffication Law, NFA is still restricted from importing grains to boost stocks or directly selling rice to the public.

Looking ahead, NFA plans to purchase around 880,000 metric tons of palay in 2025 to meet the higher buffer stock requirement of 555,000 metric tons, which would cover 15 days of national rice consumption in the event of emergencies.

Published Date: March 29, 2025