The National Food Authority (NFA) is preparing to auction off up to 60,000 metric tons of aging rice stocks next month or until October, aiming to prevent spoilage, free up warehouse space, and support rice supply amid an import suspension.
Agriculture Secretary Francisco P. Tiu Laurel Jr., who chairs the NFA Council, said the move aligns with President Ferdinand Marcos Jr.’s order to halt rice imports for two months starting September 1 to lift palay prices, especially during the peak of rice harvest.
“We’re essentially hitting three birds with one stone: avoiding supply shortfalls, clearing space so NFA can buy more palay from local farmers, and preventing spoilage of aging rice,” Tiu Laurel explained.
Before the public auction, government relief agencies will have the first opportunity to buy the rice stock in September, said NFA Administrator Larry Lacson. The NFA can only auction two month old rice or older.
The auction will feature a graduated pricing scheme, with floor prices ranging from P27.96 to P25.01 per kilo, depending on how long the rice has been stored. NFA rice stocks are considered aging starting from the third month from milling.
NFA’s current buffer stock stands at 450,000 MT, enough to meet 12 days of national demand in case of emergencies. The upcoming auction represents roughly 1.2 million sacks of rice—or about 13 percent of total buffer.
An earlier plan to auction palay was scrapped due to low market prices, according to acting NFA department manager Roy Untiveros.
With harvest season approaching, the NFA aims to strike a balance between market stability, warehouse efficiency, and farmer support.
