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THE National Food Authority’s (NFA) coming auction of aging rice stocks is expected to draw negative reaction from critics, Agriculture Secretary Francisco Tiu Laurel Jr. said on Wednesday.

“Make no mistake — we expect critics to pounce the moment we hold the auction,” stressed Tiu Laurel, who is also chairman of the NFA Council.

“They’ll say the rice is weevil-infested, of poor quality, and [a product] of negligence. But this is the inevitable consequence of stripping the NFA of its full powers in the Rice Tariffication Law (RTL),” he noted.

The public sale of 60,000 metric tons (MT) or 1.2 million 50-kilogram (kg) bags of rice is set in October, after government relief agencies and other bureaus make the first purchases.

The auction is aligned with President Ferdinand Marcos Jr.’s order for a 60-day suspension of rice imports effective Sept. 1.

It is intended to support local rice producers, after the influx of cheap imported rice was cited as the reason behind the drop of palay (unmilled rice) farmgate prices to as low as P8/kg in some parts of the country.

Tiu Laurel explained that the RTL limited the NFA’s ability to effectively manage its rice stocks and invest in proper storage infrastructure like silos and temperature-controlled warehouses.

“Unless we’re allowed to manage our stocks more efficiently and invest in long-term storage, spoilage will continue to haunt us,” he emphasized.

Aside from selling aging rice — stored for three months after milling — the auction will also help prevent a possible supply shortage amid the 60-day rice import suspension and clear storage space, allowing the NFA to continue procuring palay from local farmers.

The auction will follow a graduated pricing scheme, with floor prices set at P25.01 to P27.96/kg, depending on the rice’s storage period.

The NFA currently has 450,000 MT of rice buffer stocks, enough for 12 days of national consumption. The total volume to be auctioned is 13 percent of the country’s rice buffer stocks.

A previously planned auction was scrapped due to a drop in market prices.

Source : msn