Top News

MANILA, Philippines — The state-run National Food Authority (NFA) has announced earnings of P936.5 million from the auction of its aging rice stocks, exceeding its target of P912.4 million.

The NFA successfully auctioned nearly 90 percent of its aging rice stocks on Feb. 20 as it sought to free up warehouse space for fresh palay procurement during the dry season harvest.

The agency sold 32.5 million kilos of rice at an average price of P28 per kilo, according to NFA administrator Larry Lacson.

“But more important than the revenue the auction raised is the space it cleared in warehouses that will allow NFA to buy more palay from our farmers at a fair price,” said Agriculture Secretary Francisco Tiu Laurel Jr., who chairs the NFA Council.

Bid documents are being validated by the NFA before all sale contracts are finalized.

The NFA tendered a total of 737,339 50-kilo bags of milled rice that had been in storage for three to 18 months.

It set the floor price based on stock age, ranging from P22.52 per kilo for stocks held over 18 months to P25.16 per kilo for rice stored for three to six months.

Of the 83 lots offered, the NFA secured bids for 57 lots, equivalent to 604,364 bags or 88 percent of the total volume, according to the Department of Agriculture.

The DA added that 39 bidders purchased bid documents, though only 19 are expected to secure contracts.

“The agency plans to use the anticipated freed warehouse space to store palay it will procure from local farmers at a minimum of P17 per kilo for wet palay and a floor price of P21 per kilo for dry palay,” the DA said, noting that the dry harvest season for rice will peak between April and May.

The department also pointed out that the average bid price of P28 per kilo, well above the established floor prices, shows “firm” market demand despite the age of the rice stocks.

In December last year, the NFA auctioned 315,000 bags of aging rice, with prices landing within the expected P22.52 to P25.16 per kilo range.

Source : philstar