Private traders’ aggressive buying following a four-month rice import ban and expectations of a strong El Niño later this year pushed palay prices higher, limiting the National Food Authority’s (NFA) procurement despite higher government buying prices for farmers.
From January to the first week of May, the NFA said it purchased only 13,127 metric tons (MT), or 262,540 bags of palay. The amount is equivalent to just 4.2 percent of its 313,315-metric-ton procurement target for the period.
NFA administrator Larry Lacson said private traders outpaced the agency’s buying operations in the early months of the year as farmgate prices surged to more than triple the P8-per-kilogram level recorded before President Ferdinand Marcos Jr. imposed the import ban in September.
Lacson said the agency does not view the situation negatively, noting that farmers benefited from stronger palay prices.
He said the higher market prices also allowed the NFA to conserve funds, giving it more flexibility to ramp up purchases as the harvest season winds down ahead of the main procurement period later this year.
Since April, however, the NFA has aggressively stepped up palay buying following a slowdown in traders’ buying prices. From April to the first week of May alone, the agency procured 11,301 metric tons.
Lacson said around 15 percent of expected dry-season production remains unharvested, with the NFA maximizing purchases to support farmers and strengthen national rice reserves. The agency said it continues to prioritize farmers listed under the Registry System for Basic Sector in Agriculture (RSBSA) to ensure targeted procurement.
He also urged RSBSA-registered farmers to sell to the NFA to support the government’s “Benteng Bigas, Meron Na!” program aimed at providing affordable rice to consumers.
“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,” Department of Agriculture Secretary Francisco Tiu Laurel Jr. said.
“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,” Tiu Laurel said.
As of May 7, the NFA rice inventory stood at 6.75 million bags, or 337,618 metric tons. This was equivalent to 8.74 days of national consumption based on a daily demand of 38.6 MT.
