The National Food Authority (NFA) aims to increase the drying capacity of its palay (unmilled rice) procurement from the current 12 percent to 100 percent by the end of next year, as it prepares to open new drying facilities.

NFA Administrator Larry Lacson said that the grains agency will reach 100 percent by December 2026, provided the planned inauguration of several dryers and rice mills across the country remains on schedule.

Lacson said these additional drying facilities will start to open by the middle of next year to prepare for the following year’s harvest season and to support the NFA’s palay procurement plan.

The NFA earlier set a target to buy 900,000 metric tons (MT) of palay next year with a budget of ₱27 billion to maintain its buffer stock requirement of 15 days. 

But this has since been reduced to ₱11.2 billion under the government’s proposed 2026 national budget—enough only for the procurement of 300,000 metric tons, including milling, transport, and distribution. As budget deliberations are still ongoing, the rice grains agency remains optimistic about securing higher funding.

“If our target is, let’s say, 900,000 metric tons of rice procurement. So we will be at 100% capacity, meaning, we can dry the rice that we're going to buy,” Lacson told reporters on Friday, Oct. 17.

“I hope there won’t be a snag or anything like that so it will go on continuously,” he added.

From the current 12 percent drying capacity, the NFA has set aside ₱5 billion to fill the remaining 88 percent through the establishment of new drying facilities. 

This modernization effort seeks to eliminate inefficiencies in post-harvest processing and increase rice recovery rates

The NFA earlier said that adding new drying facilities would allow farmers to sell palay with higher moisture content without having to shoulder the burden of drying it themselves. 

This would help ensure consistency in rice quality, thereby stabilizing prices for both farmers and consumers.

One of the key facilities that would boost the NFA’s drying capacity is the Japanese funded-rice processing system that will rise in Cauayan, Isabela.

The Japan International Cooperation Agency (JICA) formalized on Thursday its plan to invest ₱665 million to help the country cut down on post-harvest losses.

Lacson said the groundbreaking for this facility, which also includes a silo and warehouse, is scheduled for next week and is targeted for completion by the end of next year.