The NFA palay buying price 2026 has increased to as much as ₱30 per kilogram for clean and dry palay, giving qualified Filipino farmers an opportunity to sell more of their harvest directly to the government. The National Food Authority (NFA) has also expanded its purchase limit from 200 bags to as many as 500 bags per farmer, as the government works to strengthen domestic rice reserves and support local agricultural producers.

The policy aims to improve farmers’ earnings while increasing government rice reserves ahead of potential supply disruptions associated with a strong El Niño.

NFA Administrator Larry Lacson said on November 8 that around 80 percent of the agency’s branches nationwide are already purchasing clean and dry palay at ₱30 per kilogram. The lowest buying price is now ₱28 per kilogram, according to the announcement reported by Radyo Pilipinas.

The expanded procurement limit will allow farmers to sell more of their harvest directly to the government. However, the actual volume each farmer can deliver will depend on cultivated land area and the average palay yield in their province, subject to the program’s five-hectare limit.

The top buying price applies to qualifying clean and dry palay. Freshly harvested palay receives a lower rate, generally ranging from ₱25 to ₱26 per kilogram, depending on moisture content.

Palay Production Declines in Third Quarter

The higher procurement price comes as Philippine rice production faces pressure.

Data released by the Philippine Statistics Authority (PSA) on November 4 showed that palay production reached 3.08 million metric tons from July to September 2026, down 17.8 percent from the 3.75 million metric tons recorded during the same period last year.

The harvested area also declined by 17.6 percent to approximately 755,370 hectares, reflecting a smaller area harvested compared with the previous year.

The figures highlight the importance of maintaining domestic rice production as the government prepares for possible weather-related challenges.

The PSA also reported that Cagayan Valley was the country’s leading palay-producing region during the third quarter, followed closely by SOCCSKSARGEN and the Bangsamoro Autonomous Region in Muslim Mindanao.

NFA Targets 790,000 Metric Tons in Procurement

The agency is targeting to purchase 790,000 metric tons of palay in 2026 and another 790,000 metric tons in 2027 to strengthen government rice reserves.

The procurement program is also intended to support government rice distribution and emergency assistance during disasters, including typhoons and droughts.

Increasing the buying price and purchase limit could encourage more farmers to sell their harvest to the government rather than depend entirely on private traders.

However, the agency’s ability to meet its procurement targets will depend on available funding, warehouse capacity, grain quality and farmers’ willingness to participate.

What the Higher Buying Price Means for Farmers

The increase could provide farmers with another selling option, particularly in areas where private traders offer lower farmgate prices.

Nevertheless, the ₱30 rate is not automatically guaranteed for every delivery. Farmers must meet the NFA’s quality requirements, and actual payments depend on the applicable buying rate and eligibility conditions.

For rice consumers, the immediate effect is not necessarily a reduction in retail prices. The program primarily focuses on supporting local producers and building government reserves to help maintain rice availability during supply disruptions.

The expanded procurement program will ultimately depend on how effectively the NFA can purchase, process and store locally harvested palay while ensuring that qualified farmers can access the program.