The National Food Authority (NFA) finally succeeded in auctioning off nearly 16,000 metric tons of aging rice on December 5, clearing much-needed space in its warehouses after months of unsuccessful attempts.
NFA Administrator Larry Lacson said the sale of 315,000 bags will open up storage for newly harvested palay, helping the agency buy more from farmers and support their incomes.
Agriculture Secretary Francisco P. Tiu Laurel Jr. called the auction a “critical move” to unclog storage facilities and keep palay prices stable. He said the government will continue working to dispose of old stocks to strengthen support for farmers.
Interest from traders was strong: 30 prospective bidders bought 68 bid documents covering more than 618,000 bags. In the end, 27 bidders submitted offers for 31 lots. After evaluation, only 13 bidders—covering 25 lots—qualified for award, while 14 were disqualified due to incomplete documents, insufficient bid bonds, or low volume offers.
Winning bids ranged from P22.52 to P25.16 per kilo, which the NFA says indicates that traders’ return to the market could help ease retail rice prices.
This success was crucial for the agency. A previous failed auction had pushed the NFA close to a negotiated sale, which often forced the government to accept lower prices.
The NFA still holds around 1.2 million bags of aging rice nationwide, blocking space needed for fresh palay. With the agency’s mandate now focused on buffer stocking and sales limited to public bidding, unloading old rice has become difficult.
Tiu Laurel said proposed legislation could eventually give the NFA more flexibility. If passed, the reforms would help the agency dispose of buffer stocks faster and better support both farmers and consumers.
For now, officials say the successful auction gives the NFA something it urgently needed: more room to buy fresh harvests and better manage its aging stocks.
