The National Food Authority (NFA) on Monday said it will auction off its aging rice stocks to free up warehouse space.

The NFA’s aging rice refers to milled rice stocks two months and a day old or above.

In a media interview, NFA Administrator Larry Lacson said this would help the agency secure more spaces for the local palay (unhusked rice) procurement from farmers amid the dry harvest season.

“Magpapa-auction ako (I will launch an auction) under the law… Hoping that by the end of this month or early next month. We will be targeting the regions na puno ang bodega (with full warehouses) so that we can free up, then we can buy,” he said.

The NFA earlier said it plans to procure 880,000 metric tons (MT) of palay this year to meet the 15-day or equivalent to 555,000 MT of national rice buffer stock.

The agency, however, has yet to determine the floor price for the auction of aging NFA rice stocks.

“Pag-aaralan pa (We will still study it). It’s a combination of world market prices, current cost, so you have to balance it,” Lacson said.

“Pwede mong sabihin na PHP38, pero kung nakakabili sila ng imported at PHP30 to PHP34, sino naman ang makikipag-bid (You can say PHP38 but if they can buy imported rice at PHP30 to PHP34, who will bid)?”

The bidding will be opened for all, including other government agencies, farmer cooperatives associations (FCAs), and other private stakeholders, among others.

Besides the auction, the Department of Agriculture (DA) earlier launched the sale of NFA rice to local government units (LGUs) through the Food and Terminal Incorporated (FTI) under the declaration of food security emergency for rice.

At least 15,000 bags of NFA rice stocks have been procured by LGUs, including Camarines Sur, San Juan, Navotas, Cotabato, Isabela, and Mati City; far below the 500,000 bags target monthly release nationwide.

As of April 11, the NFA has 7.17 million bags of total rice inventory, which is inclusive of 9 million bags of palay and 1.2 million milled rice. (PNA)