NFA seeks P16.3-B budget for palay procurement in 2025

The National Food Authority (NFA) is seeking a P16.3-billion funding next year to procure palay as well as to boost its storage capacity.

In a statement on Thursday, the NFA said its proposed budget for 2025 under the Department of Agriculture (DA) stands at P24.85 billion, up 77% from P14.03 billion this year.

Of the grains agency’s budget this year, P9 billion has been set aside for palay procurement with an assumed procurement price at P23 a kilo maximum. 

However, the NFA Council, last month, raised the maximum purchasing price to P30 per kilo to allow the agency to effectively compete with private traders for local rice supply. 

With this, the agency would need P16.3 billion next year for palay procurement.

For his part, NFA Acting Administrator Larry Lacson said apart from funding the procurement of palay from local farmers, the agency will also have to build additional storage and drying facilities to improve its buffer stocking capacity.

Currently, the NFA only has the capacity to dry 31,000 metric tons but buys around 495,000 metric tons of palay. 

NFA is required by law to maintain a buffer stock equivalent to about nine days of national rice consumption.

The Rice Tariffication Law has limited the NFA to procuring rice from local farmers in pursuit of its duty to build a national buffer stock  to ensure sufficient rice supply in case of emergency. 

RTL has also stripped the NFA of its responsibility to intervene in the market to stabilize prices, or import rice to increase the buffer stock.

Congress is currently debating whether to restore the NFA’s power to import rice or stabilize prices in the market. 

The proposed bill in the House of Representatives authorizes the NFA to buy and sell rice in emergency cases and increases farmers' productivity aid to P15 billion.

Agriculture Secretary Francisco Tiu Laurel Jr. earlier said that there was no intention to revive the powers of the NFA amid moves to amend the RTL.  —KBK, GMA Integrated News