The National Food Authority (NFA) finally scored a decisive win on Friday, December 5, successfully tendering nearly 16,000 metric tons of aging rice—an outcome the grains agency had been chasing for months.
“The bidding result allows us to award 315,000 bags, a volume that frees up warehouse space for more palay procurement to boost our farmers’ income,” NFA administrator Larry Lacson said. Agriculture Secretary Francisco P. Tiu Laurel Jr., who chairs the NFA Council, called the sale a critical move to unclog storages and keep palay prices firm.
“We will continue finding ways to dispose of aging rice to bolster palay prices and farmers’ incomes,” he said.
Demand was fierce. 68 sets of bid documents were purchased by 30 propective bidders covering 618,660 bags.
During the the Opening of Auction Tenders, only 27 submitted for 31 lots. After scrutiny, only 13 bidders with 25 lots advanced and recommended for award. 14 were dropped for insufficient bid bonds, faulty documents, or offers below minimum volume.
Lacson said winning prices landed within the expected P22.52 to P25.16 per kilo range, a signal that traders’ re-entry could help temper retail prices.
“When these stocks move quickly, consumers feel the relief,” he noted.
The agency needed this win badly. The first auction had failed, bringing the NFA to the brink of a negotiated sale—an option that typically forces the government to settle for lower prices.
The NFA has 1.2 million bags of aging stocks in warehouses nationwide, preventing the entry of freshly harvested palay.
With its mandate trimmed to buffer stocking and its ability to sell limited strictly to public bidding, clearing old rice has become a challenge. Secretary Tiu Laurel said pending legislation could change the game.
“We are hopeful that once these measures pass, the NFA can swiftly dispose of buffer stocks and become far more effective in supporting rice farmers and lowering rice prices for consumers,” he said.
For now, Friday’s successful tender gives the NFA what it desperately needed: room to buy, room to breathe, and room to finally get ahead of its aging rice stocks.
