The National Food Authority (NFA) is proposing a ₱27-billion budget for 2025 to scale up domestic palay procurement and meet its 15-day mandated rice buffer stock, equivalent to 900,000 metric tons. NFA administrator Larry Lacson announced the proposal on Wednesday, emphasizing its importance for national food security and supporting local farmers.
This marks a significant increase from the ₱17 billion available in 2024, and aligns with the Department of Agriculture’s push for the NFA to expand its market share from 3–4 percent to 20 percent of the country’s rice output. Agriculture Secretary Francisco Tiu Laurel Jr. said the move aims to restore the agency’s market influence and positively impact palay prices and farmer incomes.
With buying prices averaging ₱24–₱27 per kg for palay and local rice retailing at ₱33–₱48 per kg in Metro Manila, the NFA’s strengthened procurement could moderate price volatility and improve farmer earnings. If approved, the budget would mark a policy shift toward more active government intervention in rice market dynamics through enhanced buffer stocking and domestic sourcing.
