NFA Projects P557.3M Revenue Boost from Increased Rice Prices for Government Agencies

The National Food Authority (NFA) announced that it expects to generate over half a billion pesos in revenue this year, following a decision to raise its selling price of rice to the Department of Social Welfare and Development (DSWD) and other government agencies.

Agriculture Secretary and NFA Council Chairman Francisco Tiu Laurel Jr. stated that this price adjustment will help reduce NFA’s losses and provide additional resources to purchase more palay from local farmers. The new pricing is forecast to generate P557.3 million in additional revenue for 2024.

In 2023, the NFA reported a net loss of P6.19 billion as it focused on buying palay to maintain a nine-day buffer stock, equating to about 300,000 metric tons of rice.

NFA Administrator Larry Lacson added that this revenue will enable the agency to buy more palay, enhancing both the national rice buffer and farmer income. With the raised selling price—P38 per kilo from P25 per kilo for government agencies—the NFA will be able to purchase an additional 400,000 50-kilo bags of palay, equivalent to around 12,600 metric tons of rice.

Lacson reassured that this price increase, aimed at the DSWD, other relief agencies, and local government units, will not impact the overall market price of rice.

Earlier this year, the NFA Council raised the buying price range for palay to P17 to P30 per kilo, allowing the agency to compete with private traders affected by El Niño and India’s rice export ban, which has since been lifted. This adjustment helped the NFA purchase around 3.5 million 50-kilo bags of palay in the first half of the year.

For the ongoing wet season, the NFA aims to procure between 6.4 million and 8.7 million bags of palay. The agency has requested the release of P9 billion from the Department of Budget and Management, increasing its total rice procurement funds to P11 billion.