Manila: The National Food Authority (NFA) announced plans to auction aging rice stocks in early May to create more space in its warehouses. This move comes amid the agency's ongoing procurement of palay (unhusked rice) during the dry harvest season.
According to Philippines News Agency, the NFA Council has previously given the green light for auctioning up to 232,141 metric tons (MT) of aging palay and 62,890 MT of aging rice within the year. NFA Administrator Larry Lacson emphasized that the priority will be given to rice stocks that are 12 months old or more.
Lacson explained that the aim is to free up space and prevent the further deterioration of the stocks, ensuring they are disposed of before becoming unfit for human consumption. The initial volume for auction in May is estimated to be between 5,000 MT and 20,000 MT.
The NFA is considering a hybrid approach for the auction, which will take place both at the NFA Central and select regional levels. However, not all approved volumes of palay will be auctioned immediately. Lacson mentioned that old palay would undergo a mill test, and if the results are favorable, the palay will be milled and sold as rice.
The floor price for aging rice stocks is yet to be determined, but it may range from PHP22 to PHP28 per kilogram. The NFA is also preparing its pre-auction processes to ensure a smooth release of the stocks in May.
