NFA revises palay procurement rules

LocalBusiness & Finance
27 Feb 2026 • 12:16 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

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THE National Food Authority ( A) has revised its procurement rules for palay (unhusked rice) to allow more farmers to sell their harvest to the government, the Department of Agriculture (DA) said on Thursday.

The A, an attached agency of the DA, said that the acceptable moisture content for buying palay from farmers is now 11 to 14 percent — a slight adjustment from the previous 12 to 14 percent benchmark which had resulted in rejected deliveries.

The adjustment would allow more palay deliveries to qualify for a higher procurement price without being downgraded due to technicalities, the A said.

“By widening our specifications, we can absorb more volume and help farmers avoid distress selling,” A Administrator Larry Lacson said. “Every percentage point we adjust in moisture tolerance can mean more [palay] bags accepted and more income in farmers’ pockets.“

The A has also refined its pest standards to “visibly free from pests” to reduce rejections for minor, nonmaterial defects in palay harvests.

These changes followed a stakeholders’ meeting on Monday at the A central office in Quezon City, where farmers, millers, and retailers discussed with agency officials the modified procurement standards.

The timing of the revisions was critical since increased supply during harvest season usually causes a drop in palay farmgate prices.

The buying price for fresh and wet palay remains at P17 per kilogram (kg) and dry palay at P21/kg.

“This is about aligning procurement policy with the realities faced by our farmers,” Agriculture Secretary Francisco Tiu Laurel Jr. said. “President Ferdinand Marcos Jr. has been clear. We want farmers to be profitable, not perpetually vulnerable to price swings. A food-secure Philippines starts with farmers who earn fairly from their harvest.”

The A had drawn criticism from farmers who argue that rigid procurement rules for palay force them to sell to private traders at lower prices. Revising the rules will make it more accessible to farmers as harvest season peaks in March and April.

The agency is mandated to ensure food security by maintaining an optimal national rice buffer stock sourced solely from local farmers. It acts to stabilize the supply and price of rice, particularly during emergencies, calamities, and periods of high price volatility.