NFA’s Palay Procurement Falls Short in February Amid Market Challenges

The National Food Authority (NFA) of the Philippines reported a shortfall in its palay (unhusked rice) procurement for February, acquiring only 12,378 bags, equivalent to 618.9 metric tons (MT). This figure represents a mere 2.28% of its target of 542,800 bags or 27,140 MT for the month. The NFA attributed this significant discrepancy to the off-peak harvest season, with the procured palay primarily being residual from the previous cropping season.

Despite the procurement challenges, the NFA affirmed its commitment to serving the farming community and enhancing its purchase incentives. The agency is contending with price competition from traders who offer higher rates for palay, buying at P25 to P27 per kilo compared to the NFA’s maximum of P23 per kilo. This price disparity has led to discussions within the NFA Council about potentially revising its buying price to better align with market rates and support local farmers.

As of the end of February, the NFA’s rice inventory stood at 825,701 bags or 41,285 MT, which is significantly below the mandated buffer stock level of 300,000 MT, intended to last for nine days. This situation underscores the strategic importance of the NFA’s role in maintaining national food security.

Despite these procurement and inventory challenges, NFA officer-in-charge Administrator Larry Lacson reassured that the country’s rice supply remains stable, with no immediate concerns of shortage as the harvest yields are projected to be more abundant than in the previous year.

The NFA’s ongoing efforts to balance market forces, support local farmers, and ensure food security highlight the complex dynamics of agricultural procurement and the critical role of strategic planning in national food management.