NFA relaxes palay-buying rules

The National Food Authority (NFA) has eased its palay procurement rules in a bid to help farmers earn more as harvest season peaks—a time when prices are most sensitive to supply surges.

In a statement on Thursday, the NFA said it revised its palay-buying rules after convening farmers, millers, retailers, and field officials at its central office in Quezon City to review and update its standard operating procedures ahead of the harvest surge.

Among the salient revisions is a recalibration of what qualifies as “dry palay.”

Heeding farmers’ requests, the NFA said it widened the acceptable moisture content range to 11% up to 14%, replacing a narrower benchmark of 12% to 14% that often led to rejected deliveries. 

The grains agency said the adjustment allows more farmers to meet the higher procurement price without being downgraded on technical grounds.

The NFA also maintained its buying price at P17 per kilo for fresh or wet palay and P21 per kilo for dry. 

The agency also revised its pest standard, as it will now buy palay that is “visibly free from pests.” 

With the broader moisture allowances and a refined pest standard, the NFA said it is expecting fewer harvests to be turned away for minor or non-material defects.

“As harvest peaks, prices tend to soften because of oversupply,” said NFA Administrator Larry Lacson.

“By widening our specifications now, we can absorb more volume and help farmers avoid distress selling. Every percentage point we adjust in moisture tolerance can mean more bags accepted and more income in farmers’ pockets,” said Lacson.

The NFA said that for years, farmers have complained that the agency’s rigid procurement rules pushed them toward private traders offering lower farmgate prices but quicker cash. 

The revised standards, it said, aim to make the grains agency a more accessible and competitive buyer while preserving grain quality and rebuilding buffer stocks.

“This is about aligning procurement policy with the realities faced by our farmers. President Ferdinand Marcos Jr. has been clear. We want farmers to be profitable, not perpetually vulnerable to price swings. A food-secure Philippines starts with farmers who earn fairly from their harvest,” said Agriculture Secretary Francisco Laurel Jr., who chairs the NFA Council. —VAL, GMA Integrated News