MANILA, Philippines — The National Food Authority (NFA) has implemented more flexible rules for purchasing palay (unmilled rice) to help local farmers secure better prices and avoid “distress selling” to private traders.
Key Policy Changes:
- Moisture Content: The NFA widened the acceptable moisture content for dry palay to 11%–14% (previously 12%–14%). This adjustment allows more farmers to qualify for the higher procurement price without being disqualified for minor technicalities.
- Pest Standard: The agency refined its quality control, now defining acceptable palay as simply “visibly free from pests.”
- Buying Prices: Despite the relaxed rules, the NFA maintained its procurement rates:
- Dry Palay: ₱21 per kilogram.
- Fresh/Wet Palay: ₱17 per kilogram.
Rationale and Impact:
NFA Administrator Larry Lacson explained that these changes aim to make the agency a more competitive buyer. Farmers often struggle with rigid rules, forcing them to sell to private traders at lower rates when they cannot meet strict NFA specifications.
Agriculture Secretary Francisco Tiu Laurel Jr. added that the policy aligns with President Ferdinand Marcos Jr.’s goal of ensuring farmer profitability rather than vulnerability to price swings during peak harvest seasons.
Procurement Challenges:
As of December 2025, the NFA had purchased 10,659.2 metric tons (MT) of palay—only 22.86% of its 46,626.1 MT target. The agency cited fully maximized warehouses and limited storage space due to ongoing repairs and rehabilitation as the primary reasons for the low procurement volume.