Manila: The National Food Authority (NFA) has announced plans to auction off its aging rice stocks in an effort to free up warehouse space. The aging rice refers to milled rice stocks that are at least two months and a day old.

According to Philippines News Agency, NFA Administrator Larry Lacson stated in a media interview that the auction would help the agency secure more space for local palay (unhusked rice) procurement from farmers during the dry harvest season. Lacson mentioned that the auction is expected to take place by the end of this month or early next month, targeting regions with full warehouses to enable the agency to continue its procurement activities.

The NFA aims to procure 880,000 metric tons (MT) of palay this year to meet a 15-day national rice buffer stock, equivalent to 555,000 MT. However, the agency has not yet determined the floor price for the auction of its aging rice stocks. Lacson noted that the pricing would involve balancing world market prices and current costs.

The auction will be open to various participants, including other government agencies, farmer cooperatives associations (FCAs), and private stakeholders. In addition to the auction, the Department of Agriculture (DA) has initiated the sale of NFA rice to local government units (LGUs) through the Food and Terminal Incorporated (FTI) under the declaration of a food security emergency for rice. So far, LGUs including Camarines Sur, San Juan, Navotas, Cotabato, Isabela, and Mati City have procured at least 15,000 bags of NFA rice stocks, which is significantly below the target of 500,000 bags for monthly nationwide release.

As of April 11, the NFA holds a total rice inventory of 7.17 million bags, which includes 9 million bags of palay and 1.2 million milled rice.