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Business February 26, 2026

PALAY PANIC: NFA FLOODGATES OPEN!

PALAY PANIC: NFA FLOODGATES OPEN!

For generations, the fate of Filipino rice farmers has often hung precariously in the balance, vulnerable to the whims of weather and market forces. Now, a significant shift is underway, promising a lifeline to those who cultivate the nation’s staple crop.

The National Food Authority (NFA) has announced a crucial adjustment to its procurement standards, directly addressing a long-standing challenge faced by farmers: moisture content. Previously strict guidelines often disqualified harvests, forcing farmers into unfavorable sales.

The agency is now broadening the acceptable range for “dry” palay – unmilled rice – from 12% to 14% moisture content, now accepting grains with levels between 11% and 14%. This seemingly small change has the potential to unlock significant income for countless agricultural families.

According to NFA Administrator Larry R. Lacson, each percentage point of increased tolerance translates directly into more accepted bags of rice and, crucially, more money remaining in the hands of the farmers who toiled to produce it. It’s a direct response to the urgent need to prevent “distress selling” – the desperate act of farmers accepting rock-bottom prices simply to avoid losing their entire harvest.

This decision wasn’t made in isolation. The NFA actively sought input from the very people impacted by these rules: farmers themselves, alongside millers, retailers, and field personnel. These consultations revealed the real-world difficulties of meeting the previous, more rigid standards.

Despite the eased requirements, the NFA is holding firm on its commitment to fair pricing. They will continue to offer P17 per kilo for fresh palay and P21 per kilo for dry, providing a stable market and a guaranteed income for those who meet the revised specifications.

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