NFA auction of aging rice draws interest
After a failed bidding in October, a second attempt by the National Food Authority (NFA) to sell aging rice stocks is attracting “many” prospective bidders.
“Based on our initial assessment, it seems like there are many interested parties (to purchase our aging stocks),” NFA administrator Larry Lacson said in an interview.
Lacson said the interest stemmed from the Marcos administration’s moratorium on rice imports, which has been extended until end-December.
He also attributed the growing interest to the improving prices of palay or unmilled rice. The household staple is now selling for P17.50 to P18.50 per kilogram.
“Our auction serves a double purpose: to have a corporate receipt (generate sales) plus free up warehouse space in preparation for the upcoming harvest season,” Lacson told reporters in Filipino.
The NFA chief said the grains agency would open bid proposals on Dec. 5.
To recall, the NFA initiated the bidding process covering 1.16 million 50-kilograms of rice.
The NFA considers rice stocks as “aging” by the third month after milling. The agency is authorized to bid out rice inventory that is at least two months old.
The selling price was lowered to attract more buyers, ranging from P22.52 per kg to P25.16 per kg, depending on how long the NFA rice has been stored.
The bidding will be held monthly, with the first auction scheduled for Dec. 5.
Up for grabs are rice stocks aged below six months and as old as 18 months.
Government agencies and private entities can participate in the auction.
Lacson said he hopes the upcoming sale would become successful. The previous bidding failed due to low participation.
In the event of another failed bidding, Lacson said the NFA would enter into a negotiated procurement, subject to the NFA Council’s approval. Under the Government Procurement Reform Act, negotiated sale is allowed after two failed biddings.
