NFA leases Tarlac warehouse to expand palay buying

The National Food Authority (NFA) on Wednesday said it is expanding its warehouse capacity in Tarlac to allow the agency to procure more palay (unhusked rice) from local farmers.

The NFA is leasing 1,782 square meters of warehouse space from SL Agritech Corp. in Barangay Masalasa, Victoria, Tarlac, adding storage capacity for approximately 100,000 bags of palay.

The facility is targeted for occupancy beginning October 1, the state grains agency said.

“Every additional warehouse space gives us more room to buy palay from our farmers at reasonable prices. We want the NFA to have the capacity to absorb more of the harvest while ensuring that farmers have a ready market for their produce,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement.

Victoria is Tarlac’s second-largest rice-producing municipality, accounting for 45,642.85 metric tons (MT) of the province’s 445,553.50 MT total palay production during the 2026 season.

“With the additional rented warehouses and the space we freed from our storage facilities by clearing our existing inventory, we are looking at buying as much as 500,000 metric tons of palay,” NFA Administrator Larry Lacson said.

The NFA has been freeing up warehouse space by selling older rice stocks and distributing inventory through various government programs.

In February, the NFA auctioned nearly 90% of the rice stocks offered, generating P936.5 million and freeing up warehouse space for fresh palay procurement.

The proposed lease with SL Agritech is expected to serve an estimated 874 farmers in Victoria and nearby municipalities, the NFA said.— MCG, GMA News

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