MANILA— The National Food Authority (NFA) is increasing its warehouse capacity in Tarlac to allow the state grains agency to purchase more palay from farmers and build up the government’s rice supply.

The NFA is leasing 1,782 square meters of warehouse space from SL Agritech Corp. in Barangay Masalasa, Victoria, Tarlac, with room for around 100,000 bags of palay. The facility is set to be occupied starting Oct. 1.

Agriculture Secretary Francisco P. Tiu Laurel Jr., who also chairs the NFA Council, said additional storage would allow the government to expand palay procurement while providing farmers with a reliable market during harvest.

“Every additional warehouse space gives us more room to buy palay from our farmers at reasonable prices. We want the NFA to have the capacity to absorb more of the harvest while ensuring that farmers have a ready market for their produce,” Tiu Laurel said.

Victoria is Tarlac’s second-largest palay-producing municipality. It recorded 45,642.85 metric tons of palay during the 2026 main crop, while the province produced a total of 445,553.50 MT.

The leased warehouse is part of a 3,382-square-meter facility with an effective storage capacity of about 166,000 bags. The site also has a rice mill, five mechanical dryers, a conveyor and a truck scale, allowing palay to be received, dried and stored in one location.

NFA Administrator Larry Lacson said the agency was maximizing available storage, including newly leased facilities, to increase its procurement capacity.

“With the additional rented warehouses and the space we freed from our storage facilities by clearing our existing inventory, we are looking at buying as much as 500,000 metric tons of palay,” Lacson said.

The additional stocks are also expected to support the government’s Benteng Bigas, Meron Na! program by providing more locally sourced rice that can be milled and distributed through subsidized government rice channels.

The NFA has been freeing warehouse space by disposing of aging rice stocks and moving inventory through government programs. In February, it auctioned nearly 90% of the rice stocks offered, generating P936.5 million and creating additional space for newly procured palay.

The proposed lease is expected to benefit around 874 farmers in Victoria and nearby municipalities. The NFA’s current palay absorption rate in Tarlac stands at 4.30%.

SL Agritech, a company under the Sterling Paper Group, operates a 10,000-metric-ton rice mill and three production hubs. It is involved in hybrid rice seed development, production and distribution, as well as rice grain trading and milling.

Tiu Laurel and Lacson also inspected a warehouse and a facility being constructed for the NFA Tarlac branch office in Barangay Aguso, Tarlac City.

The NFA’s expansion of its storage and procurement facilities comes as the government works to support farmer incomes, build rice reserves and maintain affordable rice distribution.