Metro Manila, Philippines – The National Food Authority (NFA) increased its rice buffer stocks and reduced its deficit in 2024, despite operational hurdles caused by a leadership transition and an ongoing Ombudsman investigation, the agency announced Sunday.
The leadership shift came after the Ombudsman placed 139 NFA officials and employees under preventive suspension over alleged irregularities in rice buffer stock sales.
The NFA Council, led by Agriculture Secretary Francisco P. Tiu Laurel Jr., appointed Larry Lacson as administrator in a bid to stabilize the agency’s operations. One of his early moves was to raise the palay procurement price from P16-P23 per kilogram to P17-P30 per kilogram, a decision that attracted more farmers to sell to the agency.
As of February 2025, the NFA’s total palay inventory reached 399,701 metric tons, sufficient for an eight-day supply—an improvement from the previous one-day buffer stock.
Cost-cutting measures and financial recovery
Financially, the NFA implemented strategic measures such as incorporating the Buffer Stock Incentive (BSI) for farmers under the PRICERS program and adopting a “less movement” policy for rice stocks, resulting in an estimated P631 million in expense avoidance and an additional P172.3 million in logistical cost savings in 2024. These efforts reduced the agency’s deficit from P6.097 billion in 2023 to P3.753 billion in 2024.
Operational reforms have also been implemented to streamline processes. A fast-lane service for small farmers selling fewer than 50 bags of palay has reduced waiting times. Additionally, the agency eliminated the re-bagging of 20 percent of its total palay procurement, which is expected to save around P215.4 million in operational costs in 2025.
Modernization and infrastructure development
Furthermore, to improve its supply chain, the NFA has launched the Masagana Agri-Food Infrastructure Modernization Program (MAFIM), a nationwide initiative aimed at building new post-harvest facilities. The program, part of the legacy projects of President Ferdinand Marcos Jr. and Secretary Tiu Laurel, is expected to cut annual wastage by around P10 billion.
The NFA also announced plans to acquire 90 new trucks in 2025 and an additional 150 trucks in 2026 to enhance its logistical capacity and ensure efficient rice distribution nationwide.
Combatting corruption and calls for restoring NFA’s powers
Amid its reforms, the NFA is also taking steps to address corruption within the agency. Administrator Lacson directed the agency’s legal office to file administrative and criminal charges against erring officials.
Meanwhile, Secretary Tiu Laurel called for the restoration of some of the NFA’s regulatory functions to better manage the rice market.
“We simply cannot fight these battles with one hand tied behind our backs. We need to restore NFA’s powers to regulate rice retail and manage stocks more effectively,” he said.
The NFA remains restricted from importing rice or directly selling to the public under the Rice Tariffication Law.
