The National Food Authority (NFA) on Wednesday said it is ramping up efforts to free up warehouse space through a nationwide rice auction ahead of the wet harvest season in September.
The auction aims to clear capacity for upcoming palay (unhusked rice) procurements from local farmers.
In a Viber message, NFA Administrator Larry Lacson said the agency plans to auction PHP1.18 billion worth of aging yet good-quality milled rice during its second round of biddings. This represents a target release volume of 37,000 metric tons (MT), or 741,570 50-kilogram bags.
“We are targeting to buy at least 500,000 metric tons of palay this coming season. Freeing up 37,000 MT will provide an additional 6.8 percent of open space,” Lacson told the Philippine News Agency.
To maximize volume absorption, the NFA needs to free up at least 20 percent of its total warehouse capacity.
Earlier, Agriculture Secretary and NFA Council Chairperson Francisco Tiu Laurel Jr. announced that the grains agency will buy fresh and wet palay at PHP 21 per kilogram—higher than the previous minimum buying price of PHP17 per kilogram.
Lacson said the PHP21 rate is considered favorable and will guarantee a minimum profit of PHP3 per kilogram for local rice producers.
As of Aug. 12, the NFA has awarded six lots valued at PHP64.5 million, equivalent to 2,142 MT or 42,843 50-kilogram bags.
More than 34,000 MT of aging, good-quality rice stocks valued at PHP1.052 billion remain available for negotiated sale. (PNA)
