The National Food Authority (NFA) is intensifying its procurement of palay (unhusked rice) after a period of reduced activity due to aggressive buying by private traders in recent months.
NFA Steps Up Buying
NFA Administrator Larry Lacson announced that the agency is now aggressively purchasing palay to build the country's national rice buffer stock, following a decline in traders' buying prices in April.
"The NFA has aggressively stepped up palay buying," Lacson said in a statement, noting a shift from earlier months when private traders outpaced the NFA.
From April to the first week of May, the NFA has already procured 11,301 metric tons (MT) of palay. This is a significant increase compared to the volume procured since January, when the NFA only reached 4.2 percent of its 313,315 MT target for that period, equivalent to 13,127 MT or 262,540 bags of palay.
Support for Farmers
Department of Agriculture Secretary and NFA Council Chairperson Francisco Tiu Laurel Jr. emphasized that the agency's actions are intended to maximize benefits for farmers.
"The NFA has been adjusting to a very dynamic market – stepping back when private traders offered higher prices to ensure farmers benefited, then stepping up its buying as prices normalized," Tiu Laurel said.
He added, "Moving forward, it must continue to strategically build buffer stocks, prioritize direct support to small farmers, and stay ready to stabilize supply and prices, especially as we approach the lean months and the next main harvest cycle."
Current Rice Inventory
As of May 7, the NFA's rice inventory stands at 6.75 million bags, or 337,618 MT, sufficient for 8.74 days of national consumption based on a daily demand of 38,608 MT.
