Palay Buying Game Plan: NFA Waits for End-March Window to Refill Rice Buffer

The National Food Authority plans to ramp up palay purchases by the end of March as it works to rebuild the country’s rice buffer stock without pushing market prices even higher. NFA Administrator Larry Lacson said buying too aggressively during the current harvest period could add pressure on traders and lift prices further.

For now, the agency is buying fresh palay at P17 per kilo and dry palay at P21 per kilo. Lacson said the timing matters because the NFA wants to replenish supply while avoiding a situation where government buying unintentionally overheats the market.

The NFA chief said the national average price now stands at around P21 per kilo for fresh palay and P25 per kilo for dry palay. The target for this year is to build up some 790,000 metric tons in national rice buffer stock, a key reserve used for emergencies and supply stabilization.

Lacson also pointed to rising fuel prices as a broader risk to the food chain. When fuel and farm inputs such as fertilizer and seeds become more expensive, farmers may cut back on what they use, and that can reduce harvest yields later on.

Agriculture officials, however, said current food supply remains stable, with the NFA already holding roughly 400,000 metric tons of rice buffer stock and more harvests still coming in. Bottom line: the government says supply is okay for now, pero bantay-sarado pa rin because fuel costs can quickly ripple into food prices.

Source: https://www.gmanetwork.com/news/topstories/nation/980928/nfa-palay-march-price/story/