BILYONARYO.COM

By Eileen Mencias

The National Food Authority (NFA) has failed to maintain its mandated 15-day rice buffer stock and procure sufficient palay from farmers, leaving them vulnerable to traders who have driven prices down to ₱14 per kilo this year.

The Department of Agriculture (DA) said NFA’s palay inventory stood at 399,701 metric tons as of February 2025, covering only eight days of supply—well below the required reserve.

To address the shortfall, the agency plans to buy 880,000 metric tons of palay this year and has raised its procurement price to ₱17 to ₱30 per kilo, up from ₱16 to ₱23. The DA said the price hike was necessary to attract more farmers to sell to the NFA and help replenish stocks.

Despite the deficit, the DA said the current buffer stock was a significant improvement from the single-day reserve before NFA Administrator Roderico Bioco Lacson took office.

The DA previously estimated daily rice consumption at 37,000 metric tons but recently adjusted its estimate to 50,000 metric tons in palay terms, effectively revising national demand assumptions. The Federation of Free Farmers (FFF), which pegs daily consumption at 35,000 metric tons, places it at 56,000 metric tons in palay terms.

The group has flagged inconsistencies in government data, pointing to a 1.5 million-ton discrepancy in 2024 figures that could indicate overstated production or inaccurate demand estimates.

To improve logistics, the NFA plans to acquire 80 new trucks this year and 150 more in 2026 to facilitate direct palay purchases from farmers in remote areas. The agency has also streamlined operations and introduced a fast-lane service for farmers selling fewer than 50 bags.

Agriculture Secretary Francisco Tiu Laurel is pushing for amendments to the Rice Tariffication Law (RTL) to expand the NFA’s authority over rice stock regulation and market pricing.

The RTL, enacted in 2019, removed the NFA’s power to import rice and corn or sell grains to the public. Before the law took effect, low-income consumers could buy NFA rice at ₱28 to ₱32 per kilo.

Published Date: March 31, 2025