NFA needs P9B more for rice buffer stock

The National Food Authority (NFA) announced on Wednesday that it requires an additional P9 billion to purchase domestically grown rice and meet its buffer stock goals under Republic Act No. 12708.

Administrator Larry R. Lacson stated the original budget of P9 billion is insufficient for maintaining a 15-day reserve, up from nine days previously, necessitating extra funding due to increased procurement costs.

The NFA aims to procure approximately 300,000 metric tons (MT) of unmilled rice at an estimated price of P23 per kilo to meet this new requirement.

Agriculture Secretary Francisco Tiu Laurel Jr. emphasized the need for the NFA to purchase up to 20% of domestic production or about 4 million MT to boost farmers' profitability and stabilize rice supply, noting that the NFA used to be a market maker but is now restricted to buffer stocking and buying local rice.

The NFA Council approved a resolution allowing the agency to sell rice stocks to local government units (LGUs) for disaster preparedness, aiming to release around 25,000 MT monthly without compromising emergency reserves.