The National Food Authority (NFA) on Monday announced a P10 billion modernization initiative aimed at enhancing the country’s rice storage and milling capabilities. The program, funded via government allocation, seeks to increase storage capacity, improve rice milling processes, and support farmer profitability.
According to NFA administrator Larry Lacson, the first phase of the project includes the repair of existing warehouses, with P1.5 billion allocated for the purpose. Additionally, P3.5 billion will be invested to expand storage capacity by 800,000 metric tons, nearly doubling the current 1 million MT storage. These improvements will enable the NFA to better manage the national rice inventory, address storage issues, and maintain rice quality.
Another P5 billion of the budget will go toward upgrading rice mills, drying facilities, and silos to boost processing efficiency and increase rice recovery rates. This move will ensure that the NFA can procure rice with higher moisture content, combat price manipulation by traders, and stabilize rice prices for both producers and consumers.
The modernization is expected to be fully operational by the end of 2027, with new facilities in major rice-producing regions. Lacson emphasized the need for regulatory reforms to manage buffer stocks more effectively and suggested that the NFA sell a portion of its reserves monthly for better storage space management.
In response to this development, farm groups urged the government to allocate more funds for palay procurement. While the NFA plans to purchase 545,000 MT of palay this year to meet buffer stock requirements, farm leaders push for a budget increase to help boost procurement and address declining farmgate prices, currently down to P15 to P16 per kilogram.
