NFA to auction off aging rice inventory
The National Food Authority (NFA) is auctioning more than P900 million worth of aging rice stocks to generate additional funds and free up warehouse space for freshly harvested palay, or unmilled rice.
In its invitation to bid, the NFA said it is offering 737,339 bags of milled rice, aged more than three months, valued at P909.8 million.
These are stored in NFA warehouses across the country, although most of them are located in the National Capital Region, Cagayan Valley and Ilocos.
Aging rice stocks offered for sale are priced as low as P22.52 per kilogram or as high as P25.16 per kg, depending on the storage duration of the grains. NFA stocks are aged between three and 18 months.
The grains agency will hold a preauction conference on Feb. 13, either in person or via video conferencing or webcasting, to discuss the terms and conditions of the bidding and address concerns raised by prospective bidders.
Interested parties have until Feb. 18 to send their proposals to NFA regional offices, or until Feb. 20 to submit their bids to the NFA central office in Quezon City. The agency will open auction tenders the following day, Feb. 20.
Bidders must post a bid bond equal to at least 10 percent of the total price and submit the required documents.
The auction is open to all interested farmers’ organizations, cooperatives, private individuals or groups and entities engaged in the grains business, including those into processing, wholesaling and retailing.
Auction terms
The bidding will be declared a failure in case the NFA receives no offers, the parties fail to comply with all the auction requirements or the winning bidder refuses, without justifiable cause, to accept the award of contract.
The NFA clarified that the refusal to accept the contract is applicable only when there is only one declared winning bidder.
The sale and withdrawal of NFA aging rice stocks will be conducted on an “as-is-where-is” and “no selection” basis since interested bidders have been or will be allowed to inspect the stocks prior to the opening of bids.
“The National Food Authority reserves the right to accept or reject any or all bids, to waive any formalities or defects found therein and to annul the auction process and reject all bids at any time prior to awarding of contract, without thereby incurring any liability to the affected bidder/s and to accept only such bids most advantageous to the government,” the NFA said.
NFA Administrator Larry Lacson earlier said the agency was auctioning off aging rice stocks to generate additional funds for its programs and dispose of older stocks, allowing the agency to purchase locally produced palay from farmers.
Under existing laws, the NFA is authorized to bid out aging stocks three months after milling.
