NFA relaxes palay-buying rules to benefit farmers
The National Food Authority (NFA) has eased its rules for purchasing palay or unmilled rice in an effort to increase the income of farmers.
The grains agency said in a statement on Thursday that it has widened the acceptable moisture content for dry palay to between 11 percent and 14 percent, compared to the previous 12 percent to 14 percent.
“The adjustment allows more farmers to meet the higher procurement price without being downgraded on technical grounds,” it said.
Apart from adjusting the acceptable moisture content, the NFA also refined its pest standard, which is now defined as “visibly free from pests.”
NFA Administrator Larry Lacson said the revised rules are expected to support palay buying prices, which typically weaken during peak harvest due to oversupply.
Wider specifications
“By widening our specifications now, we can absorb more volume and help farmers avoid distress selling. Every percentage point we adjust in moisture tolerance can mean more bags accepted and more income in farmers’ pockets,” added Lacson.
Despite loosening the palay procurement rules, the NFA said the buying price is maintained at P17 per kilogram for fresh or wet palay and P21 per kg for dry.
The NFA announced these changes at the request of local farmers, who have complained about rigid procurement rules, forcing them to offer their produce to private traders at lower farm-gate prices.
“The revised standards aim to make the NFA a more accessible and competitive buyer, while preserving grain quality and rebuilding buffer stocks,” it added.
Agriculture Secretary Francisco Tiu Laurel Jr. said the recalibrated policy will help ensure steady palay stocks for the government while increasing farmers’ incomes.
Steady supply
“This is about aligning procurement policy with the realities faced by our farmers,” Tiu Laurel said. “President Ferdinand Marcos Jr. has been clear. We want farmers to be profitable, not perpetually vulnerable to price swings.”
The NFA is mandated by the rice tariffication law to maintain an optimal rice inventory level, sourced solely from domestic farmers. NFA rice stocks are earmarked for distribution during emergencies or calamities and sustaining the government’s disaster relief program.
As of December last year, the NFA had purchased 213,184 bags (10,659.2 metric tons or MT) of palay, a 58.8 percent decline from last year. This represents 22.86 percent of its target to buy 932,522 bags (46,626.1 MT) of palay.
“The low accomplishment in procurement may be attributed to NFA’s fully maximized warehouses and limited storage space due to the ongoing warehouse repair and rehabilitation activities,” the NFA said in its accomplishment report for December 2025.
