The National Food Authority (NFA) is expanding its warehouse capacity in Tarlac to enable the state grains agency to buy more palay from local farmers and strengthen the government’s rice supply program.
The NFA is leasing 1,782 square meters of warehouse space from SL Agritech Corp. in Barangay Masalasa, Victoria, Tarlac, adding storage capacity for approximately 100,000 bags of palay. The facility is targeted for occupancy beginning October 1.
Agriculture Secretary Francisco P. Tiu Laurel Jr., who also chairs the NFA Council, said additional storage is critical to expanding government procurement and giving farmers a reliable buyer 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.
The proposed facility is in Victoria, Tarlac’s second-largest palay-producing municipality, which recorded 45,642.85 metric tons of palay during the 2026 main crop. Province-wide production reached 445,553.50 MT.
The warehouse forms part of a 3,382-square-meter facility with an effective capacity of about 166,000 bags. It has a rice mill, five mechanical dryers, a conveyor and truck scale, allowing palay to be received, dried and stored within the same site.
NFA Administrator Larry Lacson said the agency is working to maximize available storage, including space from newly rented facilities, to increase its palay 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.
He said the additional procurement capacity would also support the government’s Benteng Bigas, Meron Na! program by providing more locally sourced rice that can eventually be milled and sold through the government’s subsidized rice channels.
The NFA has been clearing warehouse space by disposing of aging rice stocks and moving inventory through government programs. In February, the agency auctioned nearly 90 percent of rice stocks offered, generating P936.5 million and freeing warehouse space for fresh palay procurement.
The proposed SL Agritech lease would also serve an estimated 874 farmers in Victoria and nearby municipalities. NFA’s current absorption rate in Tarlac is only 4.30 percent, highlighting the potential impact of additional storage capacity.
SL Agritech, part of the Sterling Paper Group, operates a 10,000-metric-ton rice mill and three production hubs. The company is engaged 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 facility being built NFA Tarlac branch office in Brgy. Aguso,in Tarlac City.
NFA is expanding storage and procurement infrastructure as the government seeks to support farmer incomes, build rice reserves and sustain affordable rice distribution. ### (By DA – OSEC Comms & photo by Darrel Gultia)
