The National Food Authority has successfully auctioned nearly 90% of its stored old rice stocks, freeing warehouse space for fresh local palay procurement to support farmers and stabilize market prices.
The National Food Authority (NFA) of the Philippines announced that it has auctioned off approximately 90% of its aging rice stocks, totaling 32.5 million kilos of rice sold at an average price of 28 pesos per kilo. This auction raised a total of 936.5 million pesos, surpassing the initial revenue target of 912.4 million pesos. According to NFA Administrator Larry Lacson, the successful sale has allowed the agency to clear warehouse space, particularly in its Valenzuela City facility, to accommodate new procurement of palay from local farmers. These fresh rice paddies will be purchased at a minimum price of 17 pesos per kilo for wet palay and a floor price of 21 pesos per kilo.
Of the 83 rice lots offered, 57 were successfully bid on, representing 604,364 bags or 88% of the total volume available. Although 39 bidders initially purchased bid documents, only 19 are expected to secure contracts. The agency is currently reviewing bid documents to finalize sale contracts.
The newly available warehouse space is strategically timed ahead of the dry harvest season expected around April to May, enabling the NFA to bolster market interventions aimed at supporting farmgate prices and managing buffer stocks effectively. This move underlines the NFA’s commitment to balancing supply needs while supporting farmers, particularly as it increases liquidity and storage capacity during the upcoming harvest peak.
This update is significant for the agricultural sector as it ensures rice supply stability in the Philippines, addressing both storage management and farmer price support ahead of the harvest season.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/nation/977493/nfa-auction-rice-stocks/story/
