NFA to sell 60,000 MT of aging rice in Sept
The National Food Authority (NFA) will auction off 60,000 metric tons (MT) of aging rice stocks as early as next month to free up warehouse space and prevent spoilage.
According to the grains agency, the planned bidding will continue until October or when supplies run out.
Before opening the sale to the public, government relief agencies will be given priority to purchase NFA rice stocks in September.
The NFA explained that rice stocks are considered aging starting in the third month from milling. It is authorized to bid out rice that is at least two months old.
“Then auction will be a regular activity,” NFA Administrator Larry Lacson said in a message on Thursday, adding that it is open to all legitimate business enterprises.
The NFA will adopt a graduated pricing scheme, with floor prices ranging from P27.96 to P25.01 per kilogram, depending on how long the rice has been stored.
Three birds, one stone
“We’re essentially hitting three birds with one stone: avoiding supply shortfalls, clearing space so NFA can buy more palay from local farmers, and preventing spoilage of aging rice,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement on Thursday.
Tiu Laurel said the latest move is aligned with the order of President Marcos to suspend rice imports for two months starting Sept. 1 to shore up palay (unmilled rice) prices and shield local farmers from cheaper foreign-sourced grain.
The NFA rice stocks for sale represent about 13 percent of its total buffer, currently at 450,000 MT, which is sufficient to meet 12 days of consumption.
It forms part of the 100,000 MT or approximately 1.2 million bags of local rice to be auctioned that Presidential Communications Office Undersecretary Claire Castro announced earlier.
“Amid the planned releases, the government will continue monitoring rice prices to protect both consumers and farmers from unscrupulous individuals who might try to take advantage of the situation,” Castro said.
Castro also announced the release of an unspecified volume of rice to scale up the government’s subsidized rice program that sells the staple food to select beneficiaries at P20 a kilo.
Lacson floated this plan to manage the agency’s growing rice inventory in July, saying the NFA Council has approved the updated auction guidelines.
Global market prices would serve as the base price for setting the price under the NFA’s auction rules, he said earlier.
Acting NFA department manager Roy Untiveros said a previous plan to sell palay via auction was scrapped due to low market prices.
