NFA to auction aging rice stocks in May to free up warehouse space

The National Food Authority (NFA) announced on Monday that it will auction off its aging rice stocks by early May to free up warehouse space following the slow release of stocks to local government units after a food security emergency declaration.

Aging rice refers to milled rice stocks that are two months or older, and the auction is aimed at creating room for local palay procurement from farmers during the dry harvest season.

NFA Administrator Larry Lacson said the agency plans to procure 880,000 metric tons of palay this year to meet the national rice buffer stock requirement, with the exact floor price yet to be determined but will consider world market prices and current costs.

The auction is open to various stakeholders including government agencies, farmer cooperatives, and private entities, with the goal of procuring at least 500,000 bags of NFA rice monthly nationwide.

As of now, only a few local government units have purchased from the DA since the food emergency declaration in February, highlighting delays due to election-related exemptions and council resolutions.

Mr. Lacson noted that the auction is authorized by the Department of Agriculture's (DA) emergency order allowing for the disposal of NFA inventory to boost supply and stabilize prices.