National Food Authority (NFA) has completed the emergency procurement of milling services in the Bicol Region as part of a broader government effort to expand rice buffer stocks, free up warehouse space, and support the administration’s low-cost rice initiative amid rising inflation pressures.
NFA had earlier completed a similar procurement of milling services in Mindanao’s Region 12, and more milling contracts are expected to be completed soon in other regions to bolster rice stocks and enhance food security.
The NFA said six rice millers from Albay and Sorsogon were contracted to process 114,743 50-kilo bags of palay, equivalent to about 74,580 bags of rice. The milling contracts were valued at P19.1 million.
Agriculture Secretary Francisco Tiu Laurel Jr., who also chairs the NFA Council, said the move was intended to increase the grains agency’s capacity to purchase more palay from local farmers while strengthening the country’s food security position.
“This initiative allows us to simultaneously expand warehouse capacity, build stronger emergency rice reserves, and sustain the government’s affordable rice program at a time when inflationary risks are intensifying,” Tiu Laurel said. “With global oil prices rising because of geopolitical tensions in the Middle East, protecting Filipino consumers from food price shocks has become even more critical.”
Rice remains one of the most inflation-sensitive commodities in the Philippines. Data from the Philippine Statistics Authority show rice accounts for roughly 9 percent of a typical Filipino household’s spending, with the share nearly doubling among low-income families. Economists said this makes rice prices a major driver of overall inflation, particularly during periods of external supply and energy shocks.
Efforts by the Department of Agriculture since last year had helped stabilize rice prices and temper inflationary pressures until March, when oil prices surged due to the conflict involving the United States, Israel, and Iran. After remaining below 2.5 percent for 13 consecutive months through February, headline inflation accelerated sharply to 4.1 percent in March, and further to 7.2 percent in April.
The sharp rise highlighted the economy’s vulnerability to external energy shocks, particularly as higher fuel costs ripple through transport, logistics, and food supply chains. The Bangko Sentral ng Pilipinas has also warned of sustained inflation risks as elevated oil prices continue to drive up the cost of other commodities. President Marcos has already imposed a P50 per kilo price ceiling on 5 percent broken imported rice, while the DA has announced a P53 a kilo suggested retail price on local rice.
NFA Administrator Larry Lacson said converting stored palay into milled rice would improve inventory management while strengthening the agency’s ability to respond to emergencies.
“By accelerating the milling of these stocks, we are not only boosting disaster-ready rice reserves but also creating room to procure more palay directly from farmers during the harvest season,” Lacson said. “This gives the government greater flexibility in supporting the President’s P20-per-kilo rice initiative and stabilizing supply in vulnerable markets.”
