The National Food Authority (NFA) is set to raise more than P1.43 billion from a public auction on December 5 of approximately 1.2 million bags of aging rice, following a price revision intended to attract more participants.
NFA Administrator Larry Lacson confirmed that the auction will proceed after the first attempt was stalled due to low turnout.
“It failed because not many people joined. The offer was not attractive. We hope the revised pricing will draw more participants this December,” he said.
The NFA council initially approved 59,000 metric tons of rice for auction, but the agency has since lowered prices by P2 per category depending on stock age.
The cheapest rice will now start at P22 per kilo, with a graduated pricing scheme setting floor prices up to P25 per kilo for newer stocks.
Data show that the largest share of projected proceeds will come from stocks aged 6 to 9 months, accounting for 1.03 million bags. Smaller volumes from stocks aged nine to 18 months will provide additional revenue.
The auction is open to private entities after government agencies declined to procure the stocks during the initial offer. Posting and offer requirements are under way.
Lacson said the NFA plans to hold monthly auctions to release aging inventory, stabilize supply, and meet buffer stock requirements.
He added that the agency is unlikely to buy storm-damaged palay for now due to lack of funding.
“To be honest, it’s hard for us to buy storm-damaged palay. We don’t have the capacity for quick turnaround. This involves drying, milling, and selling at a very fast pace—and we do not have the funds,” he said.
The agency may purchase storm-damaged crops if separate funding becomes available later this year or next. Othel V. Campos
Lacson also reported that the NFA has already distributed about 1.3 million bags of rice, approaching its updated target of two million bags. Stocks three months old may be included in the upcoming auction.
He acknowledged the challenges in stabilizing the market, noting that the NFA often acts only during calamities or emergencies due to limits on its market intervention mandate.
