THE National Food Authority (NFA) said on Monday that its rice storage, milling, and drying facilities will be modernized in a P10-billion program.
The funding will consist of P5 billion from last year’s budget and P5 billion from this year.
The NFA said P1.5 billion will be dedicated to repairing current warehouses to ensure rice quality.
Some P3.5 billion will go towards adding 800,000 metric tons (MT) of storage capacity by next year.
“This expanded capacity will help us address the current issue of warehouse space,” NFA Administrator Larry D. Lacon said.
The NFA’s current storage capacity is 1 million MT, with full utilization hindered by variations in rice quality and age of the inventory.
“The new warehouses, combined with updated milling and drying equipment, will maximize storage efficiency,” the NFA said.
It said the P5 billion set aside for mills, dryers, and silos will increase rice recovery rates, and ultimately improve farmer incomes.
“With the new drying facilities, farmers will be able to sell palay with higher moisture content, removing the burden of drying it themselves,” the NFA said.
“This change is expected to stabilize prices for both producers and consumers by ensuring consistent rice quality.”
The NFA said warehouse repairs are underway, including facilities in Malolos, Bulacan, which is capable of storing up to 120,000 50-kilo bags of rice, to get it ready to receive grain during the peak of the harvest in April.
Several plots of land have been donated to the NFA or made available via usufruct, making possible the construction of new warehouses in Mindanao and Luzon.
The modernization projects are expected to be operational by the end of next year, in time for the dry season harvest of 2027.
The full upgrade program will include silos in major rice-producing areas such as the Cagayan Valley and Central Luzon, allowing the NFA to store rice for up to two years, far longer than the usual six months to one year for bagged rice. — Kyle Aristophere T. Atienza