Manila: The National Food Authority (NFA) on Wednesday announced its strategic initiative to free up warehouse space through a nationwide rice auction, in preparation for the wet harvest season in September. This initiative is intended to clear capacity for the upcoming procurement of palay (unhusked rice) from local farmers.
According to Philippines News Agency, NFA Administrator Larry Lacson communicated via a Viber message that the agency plans to auction PHP1.18 billion worth of aging yet good-quality milled rice during its second round of biddings. This represents a target release volume of 37,000 metric tons (MT), or 741,570 50-kilogram bags. Lacson emphasized, "We are targeting to buy at least 500,000 metric tons of palay this coming season. Freeing up 37,000 MT will provide an additional 6.8 percent of open space."
To efficiently absorb the volume of palay, the NFA needs to free up at least 20 percent of its total warehouse capacity. This measure aligns with the earlier announcement by Agriculture Secretary and NFA Council Chairperson Francisco Tiu Laurel Jr., stating that the grains agency will purchase fresh and wet palay at PHP 21 per kilogram, which is higher than the previous minimum buying price of PHP17 per kilogram.
Lacson noted that the PHP21 rate is deemed favorable and will ensure a minimum profit of PHP3 per kilogram for local rice producers. As of August 12, the NFA has awarded six lots valued at PHP64.5 million, equating to 2,142 MT or 42,843 50-kilogram bags. Over 34,000 MT of aging, good-quality rice stocks valued at PHP1.052 billion remain available for negotiated sale.
