Philippines : NFA rice auction frees warehouse spaces for local palay buying
The Philippine Department of Agriculture said the National Food Authority freed warehouse space by auctioning nearly 16,000 MT of aging rice stocks. Thirteen bidders were cleared to buy 315,000 bags, enabling more palay procurement. Officials said the move supports farmgate prices and speeds disposal of old inventories.
MANILA – The Department of Agriculture (DA) on Tuesday said the National Food Authority (NFA) has successfully freed up warehouse spaces through a auction of almost 16,000 metric tons (MT) of aging rice stocks.
In a statement, DA Secretary Francisco Tiu Laurel Jr. said this is part of the agency’s move to sustain local palay (unhusked rice) procurement to help Filipino farmers.
“We will continue finding ways to dispose of aging rice to bolster palay prices and farmers’ incomes,” he said.
The NFA logged 30 prospective bidders, with 68 sets of bid documents covering 618,660 bags. However, it only recommended 13 out of the 27 bidders who actually submitted their bids for 31 lots.
After being recommended for an award, the 13 bidders advanced while the 14 others were dropped for “insufficient bid bonds, faulty documents, or offers below minimum volume,” according to the NFA.
“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.
Lacson added that consumers will benefit from the bidding process, as it ranged within the expected amount, or from PHP22.52/kilo to PHP25.16/kilo.
“When these stocks move quickly, consumers feel the relief,” he said.
To date, the NFA has 1.2 million bags of aging stocks in warehouses nationwide.
Tiu Laurel earlier called for the restoration of the regulatory powers of NFA to free up its warehouse spaces, and help protect both local farmers and consumers through palay procurement.
“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,” Tiu Laurel said. (PNA)
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Source : PNA
