NFA: Nearly 90% of aging rice stocks auctioned off

The National Food Authority (NFA) said Sunday it has freed up warehouse space for fresh palay procurement after auctioning off nearly 90% of its aging rice stocks on February 20.

NFA Administrator Larry Lacson said a total of 32.5 million kilograms of rice were sold at an average price of P28 per kilo.

“We are very pleased with the results, which allowed us to raise P936.5 million compared to the target amount of P912.4 million from the entire lot,” Lacson said in a statement.

The NFA said it is validating bid documents before finalizing all sale contracts.

Earlier, the agency auctioned more than 700,000 sacks of rice that had been stored in warehouses for three to 18 months.

“Of the 83 lots offered, NFA secured tenders for 57 lots, equivalent to 604,364 bags or 88% of the total volume. Thirty-nine bidders purchased bid documents, though only 19 are expected to secure contracts,” the agency said.

The NFA said the cleared warehouse space will be used to store palay to be procured from local farmers at a minimum of P17 per kilo for wet palay and a floor price of P21 per kilo.

The dry harvest season is expected to peak between April and May.

“With added liquidity and expanded storage capacity in the coming months, the NFA is positioning itself to step up market intervention as harvest season advances, aiming to support farmgate prices while keeping buffer stocks manageable,” the agency added.—MCG, GMA Integrated News