MANILA – The National Food Authority (NFA) on Wednesday announced the auction of aging rice stocks in early May to free up space in NFA warehouses amid the agency’s palay (unhusked rice) procurement during the dry harvest season.
The NFA Council has earlier approved the auction of up to 232,141 metric tons (MT) of aging palay and 62,890 MT of aging rice within the year.
In a phone interview, NFA Administrator Larry Lacson said they will prioritize 12-month-old and above rice stocks next month.
“One is to free up space and then of course, as provided under the law, to prevent the stocks from further deteriorating and at least bago siya maging (before it becomes) unfit for human consumption, nai-out na (it will be disposed of),” he said.
The initial volume subject for auction in May is estimated at 5,000 MT to 20,000 MT.
Lacson said they may opt for a hybrid approach, which will include an auction both in the NFA Central and select regional levels.
The approved volume of palay will not be automatically subject to immediate auction.
“Ipapa-test mill ko iyong matatandang palay. If I see na magaganda pa ‘yung result nung lumabas sa gilingan, igigiling ko na lang at ibebenta natin (The old palay will be subject to a mill test. If I see a good result upon milling, then we will just mill it and sell it) as rice,” he added.
The floor price of aging rice stocks, however, has yet to be determined.
A possible range may be from PHP22 per kg.to PHP28 per kg., Lacson said.
The NFA is set to roll out its pre-auction processes to ensure a smooth release in May. (PNA)