P8 billion additional budget sought for 15-day rice buffer

MANILA, Philippines — The National Food Authority needs an additional P8 billion to meet the mandated 15-day national rice buffer stock, NFA administrator Larry Lacson said on Tuesday.

At a Palace press briefing, Lacson reported that the NFA currently holds a buffer of 358,000 metric tons or 7.16 million bags of rice, which is sufficient for only 9.36 days of national consumption.

“We still need P8 billion to fill up the 15-day buffer stock. But because our pricing is flexible, we can increase or decrease the price of rice and we can buy more if the rice is relatively cheap,” he said.

The amount is in addition to the P9 billion previously allocated to the NFA for purchasing rice from local farmers.

Under Republic Act 11203 or the Rice Tariffication Law, the NFA is mandated to maintain a 15-day buffer stock of rice to ensure food security during emergencies and supply disruptions.

When asked if achieving the target is feasible given the agency’s current financial and logistical limitations, Lacson admitted it would be challenging.

“To be honest, it’s a tall order but I think it can be achieved as long as we manage it well and get our stocks out of our warehouses,” he said.

Lacson cited warehouse congestion as one of the hurdles, noting that unloading existing stocks could generate revenue for additional palay procurement.

The NFA is currently implementing a warehouse modernization program. According to Lacson, repairs on 136 warehouses are expected to be completed by the end of the month, while construction is ongoing for 36 more facilities.

“A lot of that will be finished and we can use these for additional buffer stocks,” he said.

Following the declaration of a food security emergency in February, the NFA began selling its rice reserves to local government units (LGUs).

However, as of Feb. 3, only 20,000 bags had been withdrawn from its warehouses.

When asked about the delay, Lacson suggested that some LGUs are still processing necessary clearances.

“We can only speculate, but some are getting Comelec (Commission on Elections) exemptions, while others are getting resolutions from their respective councils,” he said.