State-run National Food Authority (NFA) said Tuesday it achieved its highest rice buffer stocks in years, citing improved operations and a significantly reduced deficit, despite challenges stemming from a leadership change and an ongoing Ombudsman investigation.
The NFA, an agency under the Department of Agriculture, said it struggled to compete with private rice traders in palay (unmilled rice) purchases following an Ombudsman probe that led to the suspension of 139 officials and employees.
The NFA Council, led by Agriculture Secretary Francisco Tiu Laurel Jr., appointed Larry Lacson as the new administrator and raised the procurement price for palay to P17 to P30 per kilogram from the previous P16 to P23.
The decision, the NFA said, spurred farmers to sell their produce to the agency, leading to a surge in buffer stocks.
As of February 2025, the NFA’s palay inventory stood at 399,701 metric tons, equivalent to nearly 8 million 50-kilogram bags, enough to cover eight days of supply, up from one day’s supply before Lacson’s appointment.
The NFA also said it is modernizing its supply chain through the Masagana Agri-Food Infrastructure Modernization Program (MAFIM), a multi-billion peso nationwide initiative to build new post-harvest facilities. The agency estimates MAFIM will reduce annual wastage by about 10 billion pesos, benefiting farmers and consumers.
The NFA said it avoided an estimated P631 million in expenses in 2024 through measures including the Buffer Stock Incentive (BSI) for farmers under the PRICERS program and a “less movement” policy for rice stocks, which saved an additional 172.3 million pesos.
These cost-cutting measures helped reduce the NFA’s deficit to P3.753 billion in 2024 from P6.097 billion in 2023, it said.
The NFA also said it appointed 543 personnel as part of a restructuring aimed at improving employee morale and efficiency.
Regulatory reforms, including a fast-lane service for small farmers selling fewer than 50 bags of palay and the elimination of re-bagging 20 percent of its procurement, are expected to save about 215.4 million pesos in operational costs.
The NFA said it plans to procure 90 new trucks in 2025 and 150 more in 2026 to address logistical challenges and ensure farmers in remote areas can sell their produce.
Lacson said he instructed the NFA’s legal office to file administrative and criminal cases against erring officials, vowing to “restore public trust and transparency.”
Tiu Laurel called for the restoration of some of the NFA’s powers to better manage the rice market. “We simply cannot fight these battles with one hand tied behind our backs. We need to restore NFA’s powers to regulate rice retail and manage stocks more effectively,” he said.
Despite amendments to the Rice Tariffication Law, the NFA remains restricted from importing grains or directly selling rice to the public.
The NFA said it plans to purchase about 880,000 metric tons of palay in 2025 to meet a higher buffer stock requirement of 555,000 metric tons, equivalent to 15 days of national rice consumption.
