NFA launches P10-B program to boost rice inventory, productivity

The National Food Authority (NFA) is rolling out a P10 billion modernization program aimed at improving rice storage, boosting rice productivity, and increasing farmers' profits.

NFA Administrator Larry Lacson said new and upgraded warehouses will be built to enhance the agency’s rice and palay inventory.

He noted the program seeks to expand capacity and address warehouse space issues, as the current storage capacity of 1 million metric tons is "almost full."

The new warehouses, along with updated milling and drying equipment, are expected to optimize storage efficiency.

A portion of the program’s P5 billion will be allocated for rice mills, dryers, and silos to improve processing efficiency, increase rice recovery rates, and eliminate inefficiencies in post-harvest processing.

“These facilities will be a game-changer for the NFA, enabling us to purchase rice with moisture content above the current 14% requirement,” Lacson added, explaining that the change would prevent traders from manipulating moisture levels in palay to drive down prices.

In a statement on Monday, the Department of Agriculture said warehouse repairs are underway.

“The modernization projects are expected to be operational by the end of next year, in time for the summer harvest of 2027. The full upgrade across all regions will include silos in major rice-producing areas such as Regions 2 and 3, allowing the NFA to store rice for up to two years, far longer than the usual six months to one year for bagged rice,” the DA said.

The program is funded through government allocations, with half of the budget approved last year and the remaining P5 billion designated for rice mills, drying facilities, and other infrastructure projects in this year’s national budget.

Of last year’s funding, P1.5 billion will be used for repairs of existing warehouses to preserve the quality of both palay and rice. The remaining P3.5 billion will be directed toward expanding storage capacity by 800,000 metric tons by next year.