THE National Food Authority (NFA) said on Sunday that it plans to procure around 880,000 metric tons (MT) of palay, or unmilled rice, this year.
The planned volume will allow the NFA to meet its commitment to maintain a minimum reserve requirement of 555,000 MT rice, which is equivalent to 15 days’ consumption, the NFA said in a statement.
The NFA said it also 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.”
As of February, NFA’s total palay inventory stood at 399,701 MT or nearly 8 million bags. Its rice equivalent was good for eight days’ supply.
Meanwhile, the NFA said it has optimized the movement of rice stocks to reduce logistical costs, 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 said.
The NFA said it appointed 543 new personnel.
“These appointments aim to improve employee morale, productivity, and overall efficiency.”
The NFA also cited the establishment of a fast-lane service for small farmers selling less than 50 bags of palay, and the elimination of re-bagging covering 20% of its total palay procurement, which is expected to save around P215.4 million in operational costs in 2026.
The Department of Agriculture has been calling on Congress to provide funding that will allow the NFA to procure 20% of the harvest to better influence prices.
“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,” Agriculture Secretary Francisco Tiu Laurel, Jr. was quoted as saying in the NFA statement.
To bring down rice prices, the government has lowered tariffs and declared an emergency that triggered the release of rice stocks held by the NFA.
Inflation eased to 2.1% in February from 2.9% in January as rice inflation dropped to 4.9%, the sharpest decline since April 2020. — Kyle Aristophere T. Atienza