DA Urges 20th Congress to Restore Key Powers to NFA for Rice Market Stability

The Department of Agriculture (DA) is appealing to the incoming 20th Congress to restore key powers to the National Food Authority (NFA) to strengthen its financial position and support local rice farmers.

Agriculture Secretary Francisco Tiu Laurel Jr. said that enabling the NFA to sell its rice stocks—not just aging inventory—would improve its cash flow and create more storage space, allowing it to purchase more palay from farmers at competitive prices.

The NFA is requesting a doubled procurement budget of ₱18 billion for 2026, aiming to buy 10% of the national harvest to build up buffer stocks and stabilize market prices. Tiu Laurel added that with legislative backing and increased efficiency, the NFA could eventually scale up to buying 30% of the country’s rice output, boosting farmers’ earnings and market resilience.

Tiu Laurel also called for the restoration of the NFA’s regulatory powers, stripped under the Rice Tariffication Law (RTL), to combat abusive pricing practices by private traders and safeguard consumers.

Since the RTL’s enactment in 2019 and its recent amendments, the NFA’s role has been limited to emergency buffer stocking. It can now only dispose of rice through auctions under specific conditions, such as stock aging, food security emergencies, or natural disasters.

The DA believes that restoring the NFA’s broader market functions is key to stabilizing prices and protecting both producers and consumers.