The Department of Agriculture (DA) will increase the 2025 proposed budget of National Food Authority (NFA) to 77 percent as the government increases the buffer stock and improve drying and storage facilities for rice.

The DA said the P24.85 billion budget that it set aside for the NFA from its proposed budget for 2025 is 77 percent higher from the P14.03 billion budget this year.

NFA Acting Administrator Larry Lacson said the National Food Authority will need P16.3 billion next year to procure the target volume for the national rice buffer stock and additional budget to upgrade its storage capacity.

"Currently, NFA only has the capacity to dry 31,000 metric tons but buys around 495,000 metric tons of palay. NFA is required by law to maintain a buffer stock equivalent to about 9 days of national rice consumption," he said.

"Of the budget for this year, P9 billion has been set aside for NFA's palay procurement, with an assumed procurement price at a maximum P23 a kilo. Last month, however, NFA Council decided to raise the maximum purchasing price to P30 per kilo to allow the government corporation to effectively compete with private traders for local rice supply," he added.

Congress is still debating whether to restore the NFA’s power to import rice or stabilize prices in the market as the ice Tariffication Law stripped the NFA of its responsibility to intervene in the market to stabilize prices, or import rice to increase the buffer stock. Robina Asido/DMS