NFA says good harvest, prices brought more rice to gov’t stock

MANILA, Philippines—Improved yield and competitive buying prices bolstered the palay procurement of the National Food Authority (NFA) by 263.9 percent in October.

In a report, the grains agency said it purchased 2.5 million bags (123,561 metric tons) of palay (unmilled rice) from local farmers in October from 679,024 bags (33,951.2 MT) in the same month in 2023.

The volume is equivalent to 79.98 percent of the NFA’s target of 3.1 million bags (154,497.5 MT) for the period.

The NFA attributed the higher procurement to the good harvest of the main cropping season and the implementation of the NFA Council-approved Price Range Scheme (Pricers) for palay procurement activity.

This enables the NFA to determine the buying price of palay per province at a competitive price level either similar or above the prevailing ex-farm price. It is adjusted weekly.

The NFA’s buying price ranged from P23 to P25 per kilogram to help lower the retail price of the staple Filipino food while fulfilling its mandate of maintaining a national rice buffer stock for calamity response or disaster relief operations.

It distributed 71,669 bags (3,583.45 MT) of milled rice to various government agencies and local government units (LGUs), representing only 16.45 percent of the target to hand over 435,700 bags (21,785 MT).

“Sales to other government agencies for non-calamity purposes were calibrated due to low inventory level of rice stocks, hence low distribution accomplishment,” it added.

Of these, 47,875.5 bags were provided to the Department of Social Welfare and Development, the Office of Civil Defense, legislators and LGUs for relief operations or calamity response.

The remaining 23,793.5 bags were for government agencies and rice requirements of local governments under Executive Order No. 51 signed in 1998.

Under the EO, the NFA is the primary source of rice for government entities that either offer rice as a form of incentive or benefit to employees or use rice in connection with their functions.

The NFA also said it has a total expected milled rice inventory (TEMRI) stock of 4.9 million bags (244,724.78 MT).

According to the newly signed Republic Act No. 12078 amending the Rice Tariffication Act, the NFA can now sell rice buffer stocks to government agencies and the public via Kadiwa ng Pangulo centers in areas hounded by rice supply shortages or extraordinary price increases.

Additionally, the NFA’s rice stockpile can be replenished with either locally produced or imported rice in the event of an insufficient local supply.