The National Food Authority (NFA) successfully auctioned off nearly 90 percent of its aging rice stocks on Friday, February 20, generating higher-than-target revenues and freeing up warehouse space for fresh palay procurement.
NFA Administrator Larry Lacson said the raised PHP936.5 million compared to the target amount of PHP912.4 million from the entire lot from the sale of 32.5 million kilos of rice at an average price of PHP28 a kilo.
“We are very pleased with the results,” said Lacson.
Agriculture Secretary Francisco P. Tiu Laurel Jr., who also heads the NFA Council, welcomed the strong turnout and results. “But more important than the revenue the auction raised is the space it cleared in warehouses that will allow NFA to buy more palay from our farmers at a fair price,” he said.
The NFA offered at the auction a total 737,339 50-kilo bags of milled rice that had been in storage for between three and 18 months. The NFA set floor prices based on stock age, ranging from PHP25.16 per kilo for rice stored three to six months, down to PHP22.52 per kilo for stocks held for over 18 months.
Of the 83 lots offered, NFA secured tenders for 57 lots, equivalent to 604,364 bags or 88 percent of total volume. Thirty-nine bidders purchased bid documents, though only 19 are expected to secure contracts.
The agency plans to use the anticipated freed warehouse space to store palay it will procure from local farmers at a minimum of PHP17 per kilo for wet palay and a floor price of PHP21 per kilo for dry palay. The dry harvest season for rice will reach its peak between April and May.
The strong average price of P28 per kilo—well above the set floor prices—signals firm demand despite the age of the stocks. In December, the NFA auctioned 315,000 bags of aging rice, with prices landing within the expected PHP22.52 to PHP25.16 per kilo range.
With added liquidity and expanded storage capacity in the coming months, the NFA is positioning itself to step up market intervention as harvest season advances, aiming to support farmgate prices while keeping buffer stocks manageable.
