THE National Food Authority ( A) could miss its 2026 palay procurement target of 790,000 metric tons (MT) amid an intensifying El Niño that threatens local rice production.
But the agency nevertheless expects to purchase at least 500,000 MT of palay this year, A Administrator Larry Lacson told reporters at its 54th anniversary celebration Friday.
From January to September, the A procured 92,032 MT of palay at P27 to P30 per kilogram, spending about P2.5 billion. It also distributed 207,648 MT of rice, including 126,737 MT for the government’s P20-per-kilogram rice program.
Lacson said the agency still had about P11 billion for palay procurement.
“Our farmers have nothing to worry about. We have already distributed 50 percent of our stocks through Food Terminal Inc. and released a substantial volume of rice,” he said.
The A also generated an estimated P1.1 billion from the competitive auction of 39,597 MT of aging but good-quality rice stocks. The sale freed warehouse space for palay deliveries during the main harvest season.
Lacson said the proceeds would supplement the agency’s procurement funds and finance other projects.
The A is also accelerating its modernization program. It recently inaugurated the Dumangas Grain Facility in Iloilo, which has a rice mill capable of processing 10 MT per hour and a mechanical dryer with a daily capacity of 240 MT.
The A has also committed P10.363 billion to build 36 modern facilities and rehabilitate 128 warehouses. Of the warehouses covered by the program, 100 have been repaired or rehabilitated.