Philippines : NFA to auction 60K MT aging rice stocks ahead of wet harvest season
The Philippines’ National Food Authority will auction 60,000 MT of aging rice stocks in September to free up storage for palay procurement ahead of the wet harvest season. NFA targets 100,000–200,000 MT purchases by year-end. Current 450,000 MT buffer equals 12 days’ consumption, below the mandated 15-day minimum.
MANILA — The National Food Authority (NFA) on Thursday underscored the importance of releasing aging rice stocks to make room for palay (unhusked rice) procurement as the wet harvest season approaches.
This came as the Department of Agriculture (DA) earlier announced the auction of 60,000 metric tons (MT) of aging NFA rice stocks beginning in September, following the disclosure of Malacañang that about 100,000 MT is set for release.
Aging rice refers to milled stocks stored for three months or more.
In a Viber message, NFA Administrator Larry Lacson said the move will help them prepare for the palay buying season as the local harvest is set to begin in September, and peak in October.
“It’s critical na ma-release ang (to release the) stocks through auction so that we can buy palay from the incoming wet season harvest,” he told the Philippine News Agency.
“Wet season harvest is bigger than the summer harvest.”
Lacson also dismissed concerns that the auction would depress farmgate prices, stressing that the objective is to clear storage facilities to support local procurement.
“We don’t see it that way. Gusto natin magpa-auction para lumuwag ang bodega at makabili kami ng palay (We want it to be auctioned to free up our spaces and buy palay),” he said.
The NFA aims to procure around 100,000 MT to 200,000 MT of palay by the end of the year, Lacson added.
Currently, the NFA holds 450,000 MT in buffer stocks, equivalent to 12 days of national rice consumption.
By mandate, the agency must maintain at least a 15-day buffer.
DA Secretary Francisco Tiu Laurel Jr., meanwhile, told the PNA that the 60,000 MT of aging rice is a “portion” of the 100,000 MT earlier announced by the Palace, complementing the 60-day ban on rice importation beginning Sept. 1.
“We’re essentially hitting three birds with one stone: avoiding supply shortfalls, clearing space so NFA can buy more palay from local farmers, and preventing spoilage of aging rice,” he said.
The government relief agencies, meanwhile, will be allowed to procure the aging rice stocks in September before opening them to public auction, according to the NFA.
In terms of floor prices, the NFA will feature a graduated pricing scheme, with prices ranging from PHP25.01 per kilogram to PHP27.96 per kg, depending on how long the rice stocks have been stored. (PNA)
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Source : PNA
