Private traders’ aggressive buying has pushed palay prices higher following a four-month rice import ban and expectations of a strong El Niño later this year, effectively keeping the National Food Authority (NFA) on the sidelines despite higher government procurement prices offered to farmers.
From January to the first week of May, the NFA purchased only 13,127 metric tons, or 262,540 bags of palay—just 4.2 percent of its 313,315-metric-ton target for the period. NFA Administrator Larry Lacson said the agency was largely outpaced by private traders in the early months of the year, as farmgate prices surged to more than triple the PHP8 per kilo low seen before President Ferdinand Marcos Jr. imposed the import ban in September.
Lacson said the agency is not viewing the situation negatively, noting that farmers have benefited significantly from stronger market prices. He added that the higher price environment has also helped preserve NFA funds, allowing it greater flexibility to buy more palay as the harvest winds down and ahead of the main procurement season later this year.
Since April, as traders’ buying prices started to decline and on the instruction of President Marcos and Agriculture Secretary Francisco P. Tiu Laurel Jr., Lacson said the NFA has “aggressively stepped up palay buying.” From April to the first week of May, the agency purchased 11,301 metric tons, signaling a renewed push to rebuild buffer stocks as the harvest season tapers off.
Lacson said around 15 percent of expected production during this dry season remains to be harvested, and the NFA is maximizing purchases to support farmers while strengthening national rice reserves. The agency continues to prioritize farmers registered under the Registry System for Basic Sector in Agriculture (RSBSA) to ensure targeted and efficient procurement.
He also urged RSBSA-listed farmers to sell to the NFA to support the government’s “Benteng Bigas, Meron Na!” program, which aims to provide affordable rice to consumers.
Secretary Tiu Laurel, who is also chairman of the policymaking NFA Council, said what the grains agency is doing is meant to maximize the benefit to farmers.
“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,” said the DA chief. “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.”
As of May 7, NFA rice inventory stood at 6.75 million bags, or 337,618 metric tons—enough for 8.74 days of national consumption based on daily demand of 38,608 metric tons.
