NFA: Almost 90% of ageing rice stocks auctioned off

The National Food Authority (NFA) has freed up warehouse space for the fresh procurement of palay after the successful auction of nearly 90% of its ageing rice stocks last week.

In a statement on Sunday, NFA administrator Larry Lacson said they sold a total of 32.5 million kilos of rice for an average price of P28/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.

The agency is now validating the bid documents before finalizing all sale contracts. 

Earlier, the NFA said it will hold an auction for over 700,000 sacks of rice that had been stored in its Valenzuela City warehouse between three to 18 months.

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

It will use the freed-up warehouse space for the palay it will procure from local farmers at a minimum of P17/kilo for wet palay and a floor price of P21/kilo.

The dry harvest season for rice 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 NFA added. — JMA, GMA Integrated News