In order to secure the target quantity for the rice buffer stock by 2025, the National Food Authority (NFA) has sought a budget of P16.3 billion next year.

The Department of Agriculture (DA) recently proposed P24.85 billion to NFA, which is 77 percent higher than this year’s allocation of P14.03 billion.

NFA Acting Administrator Larry Lacson stated that their proposed budget for next year would be able to fund the palay procurement from local farmers, as well as construct more storage and drying facilities to enhance the capacity of buffer stock.

According to the DA, the NFA must maintain a buffer quantity equal to 9 days' worth of national rice consumption.

At the moment, the NFA can dry up to 31,000 metric tons but can only purchase around 495,000 metric tons of rice.

About P9 billion has been set aside for the palay procurement this year, with the procurement price set at P23 per kilo.

Last April, the Food Authority Council increased the maximum purchasing to P30 so that the government could compete with private traders for the local rice supply, as well as provide fair support to farmers.

 Meanwhile, restoring the NFA’s control over rice importation and market price stabilization is still in the works, as the Congress would still debate over this decision. For their part, they believe that this power should be assigned to the DA instead.

The NFA has been restricted to a few actions as mandated under the Rice Tariffication Law (RTL), including the acquisition of rice directly from rice farmers, inputs on stabilizing market prices, and rice importation for buffer stock.