The National Food Authority (NFA) has accelerated rice milling operations in the Bicol Region to expand government buffer stocks and create more warehouse space for palay procurement, as authorities brace for renewed inflation pressures driven by rising global oil prices.

The milling initiative, which supports President Ferdinand Marcos Jr.’s low-cost rice program, covers 114,743 50-kilo bags of palay to be processed into around 74,580 bags of rice under P19.1 million worth of contracts awarded to six rice millers in Albay and Sorsogon.

Agriculture Secretary Francisco Tiu Laurel Jr. said the emergency milling program would allow the government to strengthen food security while maintaining stable rice supply amid mounting risks from global energy market disruptions.

“This initiative allows us to simultaneously expand warehouse capacity, build stronger emergency rice reserves, and sustain the government’s affordable rice program at a time when inflationary risks are intensifying,” Tiu Laurel said.

“With global oil prices rising because of geopolitical tensions in the Middle East, protecting Filipino consumers from food price shocks has become even more critical,” he added.

The Bicol operation follows a similar milling program recently completed in SOCCSKSARGEN, with more regions expected to implement the same initiative as the government intensifies efforts to stabilize rice supply and prices.

The Department of Agriculture has identified rice as among the country’s most inflation-sensitive commodities, particularly for low-income households where rice accounts for a significant share of household spending.

Government efforts to temper rice inflation had helped keep headline inflation below 2.5 percent for 13 straight months through February. However, inflation accelerated to 4.1 percent in March and further to 7.2 percent in April after global oil prices surged amid the conflict involving the United States, Israel and Iran.

The spike in fuel costs has raised transport, logistics and food distribution expenses, prompting the government to strengthen interventions in the rice market.

President Marcos earlier imposed a P50-per-kilo price ceiling on imported rice with 5 percent broken grains, while the DA also introduced a suggested retail price of P53 per kilo for locally produced rice.

NFA Administrator Larry Lacson said converting stored palay into milled rice would improve warehouse management while enabling the agency to buy more palay directly from farmers during the harvest season.

“By accelerating the milling of these stocks, we are not only boosting disaster-ready rice reserves but also creating room to procure more palay directly from farmers during the harvest season,” Lacson said.

“This gives the government greater flexibility in supporting the President’s P20-per-kilo rice initiative and stabilizing supply in vulnerable markets,” he added.