NFA raises P400M from auction of aging rice
The National Food Authority (NFA) has sold P400 million worth of aging rice stocks via a public bidding, allowing the grains agency to free up warehouse space to procure fresh harvests.
The NFA tendered nearly 16,000 metric tons (MT) of aging rice, equivalent to 315,000 bags, to winning bidders, although the identity of these bidders have yet to be disclosed.
In a statement on Tuesday, NFA Administrator Larry Lacson said their price offers ranged between P22.52 and P25.16 per kilogram.
According to the NFA, 30 prospective bidders purchased 68 sets of bid documents covering 618,660 bags.
Only 27 bidders lodged their bids during the opening of proposals held on Dec. 5. Of these, only 13 advanced and were recommended for awarding.
The NFA said 14 bidders had been disqualified due to insufficient bid bonds, faulty documents or bids that are below minimum volume.
The agency reported a successful bidding of aging rice stocks after the previous auction had failed in October.
The NFA wants to bid out a total of 1.16 million 50-kilogram bags of aging rice stocks stored in warehouses nationwide.
The NFA is authorized to bid out old rice stocks, or that are beyond three months of milling.
The buying price depended on how long the aging rice stocks had been stored. The NFA is selling old rice inventory age below six months and as old as 18 months.
The bidding was open to government agencies and private entities.
Lacson had said the NFA would enter into negotiated procurement with various parties, including Food Terminal Inc., a state-run entity under the Department of Agriculture, in case of a failed bidding.
“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 last month.
