MANILA – Aggressive buying by private traders has driven up palay prices in recent months, leaving the National Food Authority (NFA) significantly behind its procurement target despite higher government buying prices and a four-month rice import ban.

From January to the first week of May, the NFA purchased only 13,127 metric tons or 262,540 bags of palay, representing just 4.2 percent of its 313,315-metric-ton target for the period.

NFA Administrator Larry Lacson said private traders dominated the market early in the year as farmgate prices surged following the import ban imposed in September by President Ferdinand Marcos Jr., with prices reportedly rising to more than triple the previous low of around P8 per kilo.

Lacson said the situation was not viewed negatively, noting that farmers benefited from stronger market prices. He added that the higher price environment also helped preserve NFA funds, allowing the agency greater flexibility in purchasing palay later in the season.

Since April, Lacson said the NFA has “aggressively stepped up palay buying” as trader prices began to ease, following instructions from the President and Agriculture Secretary Francisco P. Tiu Laurel Jr.

From April to the first week of May, the agency purchased 11,301 metric tons, signaling a renewed effort to rebuild buffer stocks as the harvest season winds down.

Lacson said around 15 percent of expected dry season production remains to be harvested, adding that the NFA is maximizing procurement to support farmers while strengthening national rice reserves. The agency continues to prioritize farmers registered under the Registry System for Basic Sector in Agriculture (RSBSA) to ensure targeted purchases.

He also urged RSBSA-listed farmers to sell to the NFA to support the government’s “Benteng Bigas, Meron Na!” program, which aims to provide affordable rice to consumers.

Secretary Tiu Laurel, who chairs the NFA Council, said the agency’s approach is intended to balance market conditions and farmer welfare.

“The NFA has been adjusting to a very dynamic market—stepping back when private traders offered higher prices to ensure farmers benefited, then stepping up its buying as prices normalized,” he said. “Moving forward, it must continue to strategically build buffer stocks, prioritize direct support to small farmers, and stay ready to stabilize supply and prices, especially as we approach the lean months and the next main harvest cycle.”

As of May 7, the NFA’s rice inventory stood at 6.75 million bags or 337,618 metric tons, equivalent to 8.74 days of national consumption based on daily demand of 38,608 metric tons.