NFA sets cap on palay buy

National Food Authority (NFA) Administrator Larry Lacson said Saturday the agency plans to cap the volume of palay it buys per farmer to ensure more equitable access for rice growers.

Lacson explained that some farmers manage more than two hectares of land, making it difficult to distribute the government support fairly.

“Why don’t we limit it and make it only 100 [sacks purchased] per farmer, instead of 300 going to just one farmer,” Lacson said in Filipino.

Under the new plan, the only requirement for selling to the NFA is for farmers to be registered under the Registry System for Basic Sectors in Agriculture. Land ownership is not required.

Lacson said the production cost for unmilled rice ranges from ₱12 to ₱14 per kilo, therefore the ideal floor price should be at least ₱16.

Farmers are also provided with seeds, fertilizer, cash assistance, and mechanization support under the Rice Tariffication Law.

Additionally, the government has been providing rice processing centers to farmer cooperatives, but Lacson noted a lack of legal provisions that would allow the NFA to buy directly from the centers.

“There should be a proper complementing of efforts,” he said.

The NFA plans to purchase 600 trucks by 2028 to improve its logistics.

Lacson also addressed concerns the NFA is operating like a private trader, which has prompted the agency to introduce new directives to make its unmilled rice procurement process more transparent.

“Data shows that there are about 2.6 million farmers, but we can’t serve all of them due to our limitations,” he said. “The idea of limiting them to 100 sacks is difficult to compute exactly, but the goal is to increase the number of farmers we are able to serve.”