THE National Food Authority (NFA) said it auctioned nearly 90% of its ageing rice stocks on Friday, generating P936.5 million and freeing up warehouse space for fresh palay (unmilled rice) procurement.
“We are very pleased with the results, which allowed us to raise P936.5 million compared to the target amount of P912.4 million,” NFA Administrator Larry R. Lacson said in a statement on Sunday.
The NFA said it offered 737,339 50-kilo bags of milled rice that had been stored for three to 18 months. Of the 83 lots offered, 57 were awarded, equivalent to 604,364 bags or 88% of the total volume.
Mr. Lacson said the average price of the rice sold was P28 per kilo, exceeding the floor prices of P22.52-P25.16, depending on the age of the inventory.
“The strong average price of P28 per kilo, well above the set floor prices, signals firm demand despite the age of the stocks,” the NFA said.
It said 39 bidders purchased bid documents, and 19 expected to secure contracts, subject to post-qualification and validation.
Agriculture Secretary Francisco P. Tiu Laurel, Jr., who chairs the NFA Council, said the auction’s outcome will help the NFA expand procurement from farmers.
“More important than the revenue the auction raised is the space it cleared in warehouses that will allow NFA to buy more palay from our farmers at a fair price,” he said.
The NFA said it plans to use the additional warehouse capacity to store grain procured at a minimum price of P17 per kilo for wet palay and P21 per kilo for dry palay.
“With added liquidity and expanded storage capacity in the coming months, the NFA is positioning itself to step up market intervention as harvest season advances, aiming to support farmgate prices while keeping buffer stocks manageable,” it said.
Mr. Lacson has said that the NFA is also considering shifting from centralized to regional auctions of ageing rice to speed up inventory turnover and allow more bidders to participate.
He said holding regional auctions is expected to improve efficiency and reduce congestion at the NFA central office.
The NFA said it is also considering holding auctions on a regular cycle, possibly every two months, and lowering the minimum bid volume to attract more participants. — Vonn Andrei E. Villamiel
