NFA hits only 4.2% of palay procurement target
THE National Food Authority (NFA) said it managed to procure palay (unmilled rice) equivalent to 4.2% of its target in the year to date ending early May, with private traders outbidding the agency to accumulate stock in the wake of the rice import ban.
During the period, the NFA bought 13,127 metric tons (MT) of palay, against a target of 313,315 MT.
NFA Administrator Larry R. Lacson said aggressive buying by private traders drove farmgate prices higher, forcing the grains agency to offer P30 per kilo for clean and dry palay in April. The higher offer price was also prompted by the rise in production costs in the wake of the Iran war.
The Philippine Statistics Authority reported that the average price of palay dropped 30.5% year on year to P15.60 per kilo in September, before the rice import ban that ended in January.
Average farmgate prices have since climbed to P23.31 in April 2026, posting a P7.71 difference from the September reading and a 29.2% year-on-year surge.
Mr. Lacson said the NFA does not view the situation negatively, noting that farmers benefited from stronger market prices while the agency preserved funds for purchases later in the year.
He added that around 15% of expected production during the current dry season has yet to be harvested, with the NFA continuing to buy what it can to support farmers.
Following the price cap on imported rice ordered last week, the NFA has since purchased 11,301 MT to replenish its reserves.
The NFA’s rice inventory stood at 6.75 million bags, or 337,618 MT, equivalent to 8.74 days of demand. — Pierce Oel A. Montalvo
