The National Food Authority (NFA) is expanding its storage capacity in Tarlac to buy more palay (unmilled rice) from local farmers and bolster its buffer stocks.
The grains agency said in a statement on Wednesday that it leased 1,782 square meters of warehouse space from SL Agritech Corp. in Barangay Masalasa, Victoria.
An entity under the Sterling Paper Group, SL Agritech develops, produces, and distributes hybrid rice seed, as well as trading and milling rice grains. It currently operates a 10,000-metric-ton rice mill and three production hubs.
The warehouse forms part of a 3,382-square-meter facility, with an effective capacity of about 166,000 bags. The facility houses a rice mill, five mechanical dryers, a conveyor, and a truck scale, which enable the storage and processing of palay in one location.
NFA said the facility will increase storage capacity for approximately 100,00 bags of palay. It will serve around 874 farmers in Victoria and nearby municipalities.
At present, NFA’s current absorption rate in Tarlac stands at only 4.30 percent.
Government data provided by the DA showed that Tarlac produced 445,553.50 metric tons (MT) of palay during the 2026 main crop, with Victoria contributing a record 45,642.85 MT of palay.
NFA Administrator Larry Lacson said they are maximizing available storage, including space from newly rented facilities, to procure as much freshly harvested palay as possible.
‘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.
NFA earlier said it is optimistic about purchasing up to 500,000 MT of palay during the wet harvest season amid a developing El Niño condition.
However, the grains agency would fall short of its full-year palay procurement target of 790,000 MT for 2026 in a severe El Niño.
Lacson said the NFA has P11 billion remaining in palay procurement funds for the year. The Department of Agriculture (DA) committed an additional P10 billion in standby funds to purchase more palay if necessary.
At the same time, NFA has been clearing up warehouse space by selling aging rice stocks and moving inventory through government programs.
Lacson also stated that the increased capacity will enhance the government’s subsidized rice program by providing more locally sourced rice, which will then be milled and sold through Kadiwa or other authorized rice outlets.
‘NFA is expanding storage and procurement infrastructure as the government seeks to support farmer incomes, build rice reserves, and sustain affordable rice distribution,’ it said.