The National Food Authority (NFA) said Monday it is implementing a P10-billion modernization program to enhance rice storage, build new rice mills and upgrade drying facilities.
It said this would help improve rice recovery and boost farmers’ profitability.
Funded through government allocations, half of the budget was released late last year, while the remaining P5 billion is earmarked for rice mills, drying facilities and other infrastructure under this year’s national budget.
It said of the 2024 funding, P1.5 billion would go toward repairing warehouses to maintain palay and rice quality, while P3.5 billion would add 800,000 metric tons of storage capacity by next year—nearly doubling the NFA’s current capacity.
“This expanded capacity will help address our current space constraints,” said NFA administrator Larry Lacson.
He said while the NFA’s existing capacity is 1 million metric tons, inconsistent stock quality and age hinder full utilization.
Lacson said reducing post-harvest inefficiencies would allow farmers to sell palay with higher moisture content, relieving them of drying burdens. This is expected to stabilize prices and ensure consistent rice quality.
“These facilities will be a gamechanger, allowing us to buy rice with moisture levels above the current 14 percent requirement, preventing traders from manipulating moisture levels to lower palay prices,” Lacson said.
Warehouse repairs are already underway, including at the NFA office in Malolos, Bulacan, which can store up to 120,000 50-kilogram bags of rice and will be ready to receive stocks during the peak summer harvest in April.
